Non-disclosure of income from maintenance charges was challenged. The assessee followed the mercantile...

Non-disclosure of income from maintenance charges was challenged. The assessee followed the mercantile system of accounting, and non-receipt of maintenance charges cannot be the basis for not crediting income. The CIT(A) deleted the addition, and the ITAT upheld the order, citing a lack of evidence suggesting the assessee received the maintenance charges. Late deposit of ESI funds was disallowed u/s 36(1)(va) based on the Supreme Court's judgment in Checkmate Services P. Ltd, which held that employees' contributions not paid within the due date are not allowable. The ITAT set aside the CIT(A)'s order and restored the AO's order. Regarding the disallowance u/s 14A, the addition was restricted to the extent of exempt income, following the Del..... .....

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