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TMI Blog2018 (1) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... l, it has been held that no addition u/s.68 with respect to opening balance. In our considered opinion, in such circumstances this ground of appeal cannot sustain. Addition toward the late payment of employees contribution to PF and ESIC - Held that:- The issue is squarely covered against the assessee by Hon’ble jurisdictional High Court’s judgment in the case of CIT vs. Gujarat State Road Transport Corporation (2014 (1) TMI 502 - GUJARAT HIGH COURT), wherein it is categorically held that in the case of delayed deposit of employees contribution to PF, the same will not be deductable in computing income under section 28 of the Act.The law so laid down by the Hon’ble jurisdictional High Court is binding on us. The mere fact that an appeal aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- made by AO as unexplained/unsecured loan without considering the fact that the assessee has not proved the creditworthiness and identity of the party. 3. The ld. CIT(A) has erred in law and on facts in deleting the addition of ₹ 95,274/- made by AO towards late payment of employees contribution to PF & ESIC even though the same was not paid within due date. 4. The brief facts of the case are that the AO noticed that appellant had claimed depreciation at 15% on electrical equipments instead of 10% so that the difference of 5% i.e. ₹ 1,36,878/- and further the additional deprecation of ₹ 77,178/- was inadmissible. Ld. CIT(A) held that AO has failed to appreciate that the appellant company has claimed the deprecia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achinery @25%. We allow the claim of the assessee and this issue of the assessee's appeal is allowed." 6. Similarly co-ordinate bench in ITA No.3175/Ahd/2010 has held as under: "We have heard the rival contentions and perused the material on record, it is undisputed that electrical items are fitted with projector and other film exhibition systems. Without electrical items, the projector as well exhibition systems cannot be run. Therefore, it is a part and parcel of the plant and machinery. Thus, the assessee is entitled to higher rate @25%. We confirm the order of the CIT(A) and dismiss the Revenue's appeal on this ground." 7. Respectfully following the aforesaid decision of coordinate bench, we hold that assessee has rightly claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the ground of absence of approval of gratuity fund as the deduction was not claimed on account of any provision. As per order of co-ordinate bench, in the case of New Bharat Engineering Works (Jam) Ltd. vs. ITO 44 TTJ (Ahd) 522. The learned Counsel for the assessee further submitted that the assessee made a claim on actual expenses incurred under the head gratuity contribution. Therefore, provisions of section 40A(7) of the Act would not apply in the matter. 9. Respectfully following the aforesaid decisions, we allow this ground of appeal. 10. In the result, appeal of the assessee is allowed. 11. Now, we come to Revenue's appeal in ITA No.1456/Ahd/15. So far as deleting of disallowance of interest expenses and finance charges of &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en, (iv) Suparna Sen, (v) R. R. Gopal. All other balances are opening balances. Thus without prejudice to the above and in the alternative, the appellant stated that the proposition that when advance have been made in the past for which no disallowance has been made in the year of advance, there could be no disallowance in the subsequent year and now it is settled by the decision in case of Shridev Enterprise [189 ITR 165] (Kar.) and CIT vs. Sushma Kapoor [230 CTR 262] (Del.). 13. In our considered opinion, It does not require any interference in the order passed by the ld. CIT(A). Therefore, this ground of appeal of the department is dismissed. 14. So far as disallowance of 20,00,000/- made by AO as unexplained/unsecured loan is concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case, Jurisdictional High Court has held in the matter of CIT vs. Gujarat State Road Transport Corporation, relevant Para of the same is reproduced here as under: "Section 43B, read with section 36(1)(va) of the Income-tax Act, 1961 - Business disallowance - Certain deductions to be allowed on actual payment (Employee contribution) - Whether where an employer has not credited sum received by it as employees' contribution to employees' account in relevant fund on or before due date as prescribed in Explanation to section 36(1)(va), assesses shall not be entitled to deduction of such amount though he deposits same before due date prescribed under section 43B i.e., prior to filing of return under section 139(1) - Held, yes - As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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