9911796707
TMI Blog2011 (7) TMI 1315X X X X Extracts X X X X X X X X Extracts X X X X ..... s 2003-04 and 2004-05 respectively. 2. In the appeal for the assessment year 2003-04, although the assessee has raised multiple Grounds, but essentially the dispute is on two issues. The first issue in dispute is the claim of deduction on account of educational expenses amounting to ₹ 27,03,972/-. The brief facts are that the assessee company claimed expenditure on account of education of S/Shri Gaurav M. Ghatage, Chetan M. Ghatage and Tej Satish Ghatage, who were the sons of the Directors. The Assessing Officer invoked provisions of section 37(1) as well as 40A(2)(b) of the Act and disallowed the expenditure. The claim of the assessee before the Commissioner of Income-tax (Appeals) was that the expenditure was incurred on education ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submitted that undisputably the amounts had been deposited before the due date of the filing of the return under section 139(1) of the Act and, therefore, employer's contribution towards ESI, PF and Pension fund is an allowable deduction following the ratio of the judgment of the Hon'ble Supreme Court in the case of CIT v. Alom Extrusions Ltd. 319 ITR 306 (SC). In so far as the employee's contribution is concerned, the learned Counsel pointed out that the Pune Bench of the Tribunal in the case of Jasra Graphics P. Ltd. Pune v DCIT in ITA No 374/PN/09 order dated 8.10.2010 has allowed the claim of the assessee following the judgment of the Hon'ble Delhi High Court in the case of CIT v Aimil Ltd. 321 ITR 508 (Del). Apart therefrom, reliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has to succeed on this aspect also. 10. Before parting, we may refer to a plea raised by the learned Departmental Representative that there is a distinction between the employer's contribution towards PF, ESI and Pension Fund and that of the employees' contribution in so far as its allowability is concerned. It has been pointed out that the provisions of section 43B do not apply while evaluating the allowability of employees' contribution and that such distinction has been noted by the Hon'ble Bombay High Court in the case of CIT v. Godavari (Mannar) Sahakari Sakhar Karkhana Ltd. 212 CTR 384 (Bom). The aforesaid plea of the learned Departmental Representative was opposed by the learned Counsel for the assessee by pointing out that the judg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequently reversed by the Hon'ble Supreme Court in the case of Alom Extrusions Ltd.(supra). In our view, the point sought to be made out by the learned Departmental Representative based on the judgment of the Hon'ble Bombay High Court in the case of Godavari (Mannar) Sahakari Sakhar Karkhana Ltd. is misplaced and such a situation has not been dealt with by the Hon'ble High Court. Moreover, our co-ordinate Bench in the case of Jasra Graphics P Ltd (supra) has already followed the judgment of the Hon'ble Delhi High Court in the case of Aimil Ltd. (supra) which had dealt with the allowability of amounts relating to employees' contribution towards PF and ESI. The Hon'ble Delhi High Court in the case of Aimil Ltd. (supra) specifically dealt ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
