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TMI Blog2015 (8) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition following an order of the Special Bench pronounced in the case of Merliyn Shipping (2012 (4) TMI 290 - ITAT VISAKHAPATNAM) - whether Section 40(a)(ia) of the Act can be invoked only to disallow expenditure of the nature which is shown as “payable” as on the date of the balance sheet and it cannot be invoked if amount is not outstanding even if payment has been paid without deduction of tax? - Held that:- The issue now stood covered by few orders of the Hon’ble High Court, wherein it is held that if the payment is made before the due date of filing of the return and the TDS deducted has duly been paid within that period then the same is allowable as an expenditure. In view of these orders, we hereby hold that although the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wards PF and ESIC. A month-wise and date-wise chart of employees contribution, due date and the actual date of payment was reproduced by the AO. However, according to him, the assessee had received a contribution of ₹ 3,14,12,313/- towards PF and ESIC from the employees but failed to deposit the same on due date as prescribed. The assessee has submitted few case laws for the legal proposition that the payment was made as per the amended provisions of the Act, however, the AO was not convinced and held that the same was disallowable u/s. 2(24)(x) r.w.s. 36(1)(va) of IT Act. When the matter was carried before the learned CIT(A), he has held that on identical facts predecessor for A.Y. 2008-09 has decided the issue in assessee s favou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 19,39,017/- accordingly. When the matter was carried before learned CIT(A), he has followed an order of the Special Bench pronounced in the case of Merliyn Shipping and deleted the addition. However, the issue now stood covered by few orders of the Hon ble High Court, wherein it is held that if the payment is made before the due date of filing of the return and the TDS deducted has duly been paid within that period then the same is allowable as an expenditure. In view of these orders, we hereby hold that although the decision of Merliyn Shipping (supra) was followed by learned CIT(A) is no more a good law but otherwise the issue now stood covered in favour of the assessee as per the case law cited (supra). This ground of the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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