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2018 (6) TMI 498 - AT - Income TaxDisallowance u/s 14A - Held that - Admittedly, the assessee has not earned any exempted income. Therefore, the CIT(Appeals) by placing reliance on the judgment of Madras High Court in Redington (India) Ltd. v. Addl. CIT ( 2017 (1) TMI 318 - MADRAS HIGH COURT) deleted the disallowance made by the Assessing Officer. Since the CIT(Appeals) has followed the judgment of jurisdictional High Court, which is binding on all the authorities, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. Addition under Section 43B - Delay in making employees contribution - Held that - CIT(Appeals) by placing reliance on the judgment of Madras High Court in CIT v. Industrial Security and Intelligence India (P.) Ltd. 2015 (7) TMI 1063 - MADRAS HIGH COURT , allowed the claim of the assessee. It is not in dispute that the employees contribution was deposited before the due date for filing the return of income. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.
Issues:
1. Disallowance under Section 14A of the Income-tax Act, 1961. 2. Disallowance under Section 43B of the Act in respect of employees' contribution. Issue 1: Disallowance under Section 14A of the Income-tax Act, 1961: The appeal was against the order of the Principal Commissioner of Income Tax (Appeals) -1, Chennai, for the assessment year 2012-13. The disallowance under Section 14A was challenged. The assessee had not earned any exempted income. The CIT(Appeals) relied on the judgment of the Madras High Court in Redington (India) Ltd. v. Addl. CIT and deleted the disallowance. The Tribunal upheld the decision, stating that since the CIT(Appeals) followed the judgment of the jurisdictional High Court, which is binding, there was no reason to interfere with the lower authority's order. Issue 2: Disallowance under Section 43B of the Act in respect of employees' contribution: The next ground of appeal was regarding the disallowance made by the Assessing Officer under Section 43B of the Act concerning employees' contribution. The CIT(Appeals) allowed the claim of the assessee based on the judgment of the Madras High Court in CIT v. Industrial Security and Intelligence India (P.) Ltd. It was noted that the employees' contribution was deposited before the due date for filing the return of income. Consequently, the Tribunal confirmed the decision of the lower authority, stating that there was no reason to interfere with the order. In conclusion, the appeal filed by the Revenue was dismissed by the Appellate Tribunal ITAT Chennai. The judgment highlighted the importance of following relevant court judgments and emphasized the binding nature of decisions made by the jurisdictional High Court. The Tribunal's decision was based on the adherence to legal provisions and precedents set by higher courts.
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