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TMI Blog2015 (11) TMI 1727X X X X Extracts X X X X X X X X Extracts X X X X ..... not be disallowed if the same is paid before the due date of filing of return. Accordingly, we uphold the order of the CIT(A) in allowing the assessee's claim of EPF & ESI deduction and dismiss the ground raised by the revenue. - ITA No. 879/Hyd/2015 - - - Dated:- 4-11-2015 - P. Madhavi Devi, and S. Rifaur Rahman, JJ. For Appellant: B. Kurmi Naidu ORDER S. Rifaur Rahman, 1. This appeal by revenue is directed against the order dated 22/04/2015 of ld. CIT(A)-2, Hyderabad, for the AY 2008-09. 2. Briefly the facts of the case are that the assessee, a company deriving income from software development and export, filed its return of income for the year under consideration on 29/09/08, declaring total loss of ₹ 4,52 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A). 5. The ld. CIT(A) allowed the ground of assessee following the decision of the ITAT in assessee's own case for AY 2006-07 in ITA No. 234/Hyd/2013, dated 27/08/13 by directing the AO to exclude the expenditure from both the export turnover as well as total turnover. 6. As regards the disallowance of belated payments towards PF ESI, the assessee had paid PF ESI contribution of employees for an amount of ₹ 20,08,686 belatedly. The AO disallowed the same u/s. 36(1)(va) r.w.s. 2(24)(x) of the IT Act on the ground that they were paid well beyond due date. 7. On appeal, the CIT(A) following the decision of the ITAT in the case of M/s. Speck Systems Ltd. in ITA No. 473/Hyd/2013 dated 10/07/13 for AY 2008-09, allowed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders of revenue authorities as well as other material on record. The issues in dispute are covered by the decision of the ITAT. As regards the deduction u/s. 10A, similar issue came up for consideration before the ITAT in assessee's own case in ITA No. 234/Hyd/13 for AY 2006-07 wherein the Tribunal has held as under: 6. We have heard both the parties, perused the record and have gone through the orders of the authorities below. We find that the issue in dispute is squarely covered by the decision of the coordinate bench in the case of the Patni computers Ltd. (supra) and also Special Bench of the Chennai Tribunal in the case of ITO v. Saksoft Ltd. (313 ITYR AT 353) wherein it was held that expenses excluded from export turnover s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as held that if the employees' share of contribution is paid before the due date of filing the return u/s. 139(1) of the Income-tax Act, 1961, then no disallowance can be made. 7. In view of the above, deduction of payment towards employees contribution on account of PF ESI cannot be disallowed if the same is paid before the due date of filing of return. Accordingly, we uphold the order of the CIT(A) in allowing the assessee's claim of EPF ESI deduction and dismiss the ground raised by the revenue. 12.3 In the case of CIT v. Alom Extrusions Ltd., 319 ITR 306, the Hon'ble Supreme Court has held as under: There is no merit in these appeals filed by the Department for the following reasons : firstly, s. 43B (main sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bringing about uniformity in the first proviso by equating tax, duty, cess and fee with contributions to welfare funds. Once this uniformity is brought about in the first proviso, then, the Finance Act, 2003, which is made applicable by the Parliament only w.e.f. 1st April, 2004, would become curative in nature, hence, it would apply retrospectively w.e.f. 1st April, 1988. It is important to note once again that, by Finance Act, 2003, not only the second proviso is deleted but even the first proviso is sought to be amended by bringing about an uniformity in tax, duty, cess and fee on the one hand vis- -vis contributions to welfare funds of employee(s) on the other. This is one more reason why it is held that the Finance Act, 2003, is retros ..... X X X X Extracts X X X X X X X X Extracts X X X X
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