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TMI Blog2022 (7) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance of employees' contribution to the provident fund before the due date of filing of the return of income for Assessment Year 2017-18, the disallowance is Rs. 2,94,92,315/- for Assessment Year 2018-19, the Global Waste Management Cell Pvt. Ltd.; A.Ys. 17-18 to 19-20 disallowance is Rs.3,24,66,457/- and for Assessment Year 2019-20 such disallowance is Rs.2,49,40,874/-. 02. This disallowance is agitated by the assessee before us stating that when employees' contribution to provident fund ESI is deposited before the due date of filing of the return, no disallowance can be made. 03. The facts of the case shows that the assessee made a company engaged in the business of transportation of solid waste management. For Assessment Year 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresentative vehemently supported the orders of the lower authorities. He specifically referred to the decision of Hon'ble Kerala High Court in M/s Merchem ltd. (supra) and stated when the decision of Hon'ble High Court is available; the decision of the co-ordinate Bench should not be followed. 06. We have carefully considered the rival contentions and perused the orders of the lower authorities. The issue involved in all these three appeals is whether the Central Processing Centre, Bangalore can disallow the late payment of employees contribution to various funds under section 36(1)(va) read with Section 43B of the Act. This issue has recently been decided by the co-ordinate Bench in case of Kalpesh Synthetics Pvt. Ltd. vs. CPC B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the due date of filing of the return of income, which is now being claimed by the assessee as the due date by which the payment should have been made. Based on this, Central processing centre proposed to make an adjustment u/s 143 (1) (iv) stating that disallowance of expenditure is indicated in the audit report but is not taken into account in computing the total Global Waste Management Cell Pvt. Ltd.; A.Ys. 17-18 to 19-20 income in the return. We find that indication was made in form number 3CD but disallowance was not made in the computation of total income. In response , it was stated that that the issue is covered in favour of the assessee by the decision of the honourable jurisdictional High Court and such payments are allowable if sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of late deposit of employees' contribution of provident fund as same has been deposited before the due date of filing of return of income. 09. Accordingly we allow ground number 1 & 2 of the appeal in favour of the assessee and direct the learned assessing officer to delete the disallowance of Rs. 2,94,92,315/- on account of delayed payment of Provident fund and ESI of employees contribution Under the respective law but deposited before the due date of filing of the return of income for the reason that same are not disallowable. 010. Accordingly, we direct the learned Assessing Officer to delete the disallowance for all these three Assessment Years 011. In view of this, all the three appeals filed by the assessee are allowed. Order pron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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