2003 (8) TMI 157 - AT - Income Tax

Summary

Issues:
1. Disallowance of late payment of ESI and PF.
2. Disallowance of interest on deposits held as unexplained.

Analysis:
1. The first issue pertains to the disallowance of Rs. 76,576 made by the Assessing Officer (AO) under section 36(1)(va) of the Income Tax Act for late payment of PF and ESIC by the assessee-company. The AO found that payments were late for specific months, leading to the disallowance. The CIT(A) deleted the disallowance after considering the submissions and evidence provided by the assessee. The CIT(A) noted that there was only a slight delay in some payments and cited precedents to support the argument that such delays should not warrant disallowance. The CIT(A) referenced Circulars and case law to justify the deletion of the addition. The Tribunal upheld the CIT(A)'s decision, emphasizing that the payments were made within permissible grace periods and before the due dates, as per relevant Circulars and legal precedents.

2. The second issue concerns the disallowance of interest amounting to Rs. 13,131 on deposits held as unexplained by the AO. However, the judgment does not provide detailed analysis or discussion on this specific issue. The focus of the judgment primarily revolves around the disallowance related to late payment of ESI and PF. As a result, the Tribunal's decision in this matter is not explicitly outlined in the provided summary.