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TMI Blog2023 (11) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction of expenditure which is not in the nature of expenditure prescribed in Sections 30 to 36 of the Act and also not being in the nature of capital expenditure or personal expenses of the assessee. Thus, in view of such mandate of law, the deduction of expenditure under the general clause of Section 37(1) would not extend to expenditure specially covered within the ambit of Section 36(1)(va) of the Act. The Hon ble Supreme Court in the case of Checkmate Pvt. Ltd.[ 2022 (10) TMI 617 - SUPREME COURT] itself explains this position. Methodology of calculation of default under the relevant PF/ESIC Act - The accrual of liability towards payment of salary without actual disbursement would not fasten obligation for deposits of employees contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Ld. CIT (A) has erred in law and on facts in confirming the action of Ld. ADIT, CPC in making aggregate addition of Rs. 1,18,48,520/- on account of employee's contribution to ESI and EPF and that too by recording incorrect facts and findings and without observing the principles of natural justice and without appreciating the facts and circumstances of the case and latest law in this regard. 4. That in any case and in any view of the matter, action of Ld. CIT (A) in confirming the action of Ld. ADIT, CPC in making aggregate addition of Rs. 1,18,48,520/- on account of employee's contribution to ESI and EPF, is bad in law and against the facts and circumstances of the case and the same is ne sustainable on various legal and factual g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the Tribunal restored the issue to the file of the AO with the following observations:- 9. We have carefully considered the rival submissions and perused the material available on record. The disallowance of employees contribution to PF/ESIC for breach of condition under Section 36(1)(va) is in controversy. 9.1 We notice at the outset that an opportunity was given via electronic platform of the deptt. for the proposed adjustments and in the absence of e-response, the adjustments were carried out the CPC-Bangluru and intimation was issued enhancing the assessed income in the captioned assessment years. The CIT (A) in the first appeal has sustained the adjustments towards belated deposits of employees contribution to PF/ESIC in the light o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt from the observations made in recent judgment of the Hon ble Supreme Court in the case of Pr.CIT vs. Khyati Realtors (P) Ltd. (2022) 141 taxmann.com 461 (SC). The alternate plea is thus without any merit. 9.3 We also take note of yet another plea made out on behalf the assessee towards methodology of calculation of default under the relevant PF/ESIC Act. The Ld. Counsel contends that the month during which the disbursement of salary is actually made would be relevant for the purposes of determination of due date of deposit under the respective statute. The accrual of liability towards payment of salary without actual disbursement would not fasten obligation for deposits of employees contribution in the labour Acts per se. as observed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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