Case Law Details
Pachouli Wellness Clinic LLP Vs ITO (ITAT Delhi)
It is not in dispute that the payments on account of PF/ ESI were made by the assessees after due date prescribed under the respective acts, but before due date of filing of return under the I.T. Act. The Ld. Sr. DR has also not contradicted the contentions made from the assessee’s side that the issue in dispute is covered in favour of the assesse
Ld. AR. He has relied on a number of judgements wherein the Hon’ble Courts, Tribunals have ruled that delayed payments of employee’s contribution to Provident Fund/ESIC is allowable if it is deposited before the return is filed u/s 139(1). He has also stated that the Hon’ble ITAT Delhi for the A.Y. 2013-14 in ITA Nos. 5028/Del/2016 vide order dated 3301.2017 has dismissed the appeal of Revenue against the order of the CIT(Appeals) allowing relief to the appellant on similar facts. The Hon’ble Delhi High Court in the case of CIT vs. AIM IL Ltd. (2010) 321 1TR 508 has held that the assessee can get the benefit of deduction if the payment is made before the return is filed, as per the principle laid down by the Hon’bte Supreme Court in the case of CIT vs. M/s Vinay Cement Ltd. 213 ITR 268. I find that the appellant has paid the Employee’s contribution to provident fund at Rs.6,98,27,223/- ESIC of Rs. 1,29,88,031/- and professional tax of Rs.57,47,3361- out of Rs.62,37,986!- aggregating to Rs.8,85,62,590i- out of Rs.8,90,53,240/- disallowed in the assessment order before the due date of furnishing the return uis 139(1) of the I.T. Act, 1961. In view of the legal position on the issue arid the order of the Hon’ble ITAT, Delhi in the appellant’s own case, the company is eligible for deduction of Rs.8,85,62,590/- out of the disallowance made by the AO at Rs.8,90,53,240/-by invoking provisions of Section 36(1)(va) read with 2(24)(x) and 43B of the Act. The AO is, therefore, directed to delete the addition of Rs.8,85,62,590/-.
FULL TEXT OF THE ORDER OF ITAT DELHI
(A) For the sake of convenience and brevity these three appeals by different assessees are disposed off through this consolidated order. Grounds taken in these appeals of the three different Assessees are as under:
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