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TMI Blog2022 (7) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... fore whom the assessee shall place the relevant documents including the revised audit report and the financial statement to prove that the alleged amount of service tax of Rs.79,701/- has not been claimed as an expenditure in the P L account. After affording reasonable opportunity of hearing to the assessee the ld. AO will decide this issue afresh in accordance with law. Thus, ground no.1 raised by the assessee is allowed for statistical purpose as per terms indicated above. Disallowances u/s. 43B and u/s. 36(1)(va) - delayed payment of PF/ESI of employees contribution and towards payment of PF/ESI of employer s contribution - HELD THAT:- As the uncontroverted facts remains that alleged amount is claimed as an expenditure in Profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of Rs. 5,26,357/- u/s. 36(1)(va) of the Act towards employees contribution to PF/ESI deserves to be deleted. Accordingly, we set aside the finding of the ld. CIT(A) and allow ground nos. 2,3 4 raised by the assessee. - ITA No. 84/Kol/2022 - - - Dated:- 13-7-2022 - Shri Sanjay Garg , Judicial Member And Shri Manish Borad , Accountant Member By Appellant/Assessee : Shri Sankha Sadhu, Ld.AR By Respondent/Department : Smt. Ranu Biswas, Addl. CIT/Ld. DR ORDER PER MANISH BORAD, AM. This appeal of the assessee for the assessment years 2017-18 is directed against the order dt. 21-12-2021 passed by the ld. Commissioner of Income-tax (Appeals) [ in short, hereafter referred to as the CIT-A ], National Fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the learned CIT (Appeal) has erred in law and in fact by confirming the addition of Rs. 10,52,714/- made by the Assessing Officer on account of employee's contribution to PF ESI u/s. 36(1)(va) of the Income Tax Act, 1961, without considering the submission of the appellant that Rs. 5,26,357/- was the contribution from the employee and the total addition of Rs.10,52,714/- also includes share of contribution from the Employer amounting to Rs. 5,26.357/- 3. For that the learned CIT (Appeal) has erred in law by not deleting the addition of Rs. 5,26,357/- wrongly made by the Assessing Officer on account of employer's contribution to PF u/s. 36(1 )(va) of the Income Tax Act, 1961. Though the Ld. CIT (Appeal) himself has obs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e orders of the lower authorities. 7. We have heard the rival contentions and perused the records placed before us. 8. As far as ground no. 1 is concerned, regarding addition of Rs.79,701/- made u/s. 43B of the Act for service tax payable at Rs.79,701/-, we observe that in the intimation issued u/s. 143(1) of the Act, it is noted that the assessee has debited the alleged amount in P L account and since the same was not paid before the due date of filing return of income the disallowance made u/s. 43B of the Act was made. Before us the Ld. Counsel for the assessee has submitted that there was a mistake in the observations made in the audit report on Form No. 3CD attached with the audit report u/s. 44AB in Form 3CB at the time of fili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lleged amount is claimed as an expenditure in Profit Loss account and the same stands duly deposited with the regulating authority of Provident Fund ESI before the due date of filing of return of income u/s. 139(1) of the Act. Though there is a delay in depositing the same within the time limit as prescribed under the PF/ESI Act, but since the alleged sum has been paid before the due date of filing of return u/s. 139(1) of the Act no disallowance u/s. 43B of the Act is called for. Therefore, we find no merit in the finding of the ld. CIT(A) confirming the disallowance of Rs. 5,26,357/- towards employer s contribution of PF/ESI and the same stands deleted. 11. As regards employees contribution of PF/ESI of Rs.5,26,357/- is concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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