The Tax Publishers2020 TaxPub(DT) 3047 (Jp-Trib)

INCOME TAX ACT, 1961

Section 36(1)(va)

As decided in assessee's own case, the said issues have already been decided against the revenue by this Court vide judgment dt. 6-1-2014 passed in CIT v. M/s. State Bank of Bikaner and Jaipur (2014) 363 ITR 70 (Raj) : 2014 TaxPub(DT) 1436 (Raj-HC). Therefore, following the order in assessee's own case, addition made by AO on account of delay in deposit of employee's contribution towards CPF/GPF/ESI under section 36(1)(va) was to be deleted.

Business disallowance under section 36(1)(va) - Late payment of employee's contribution to CPF/GPF/ESI - -

Assessee was engaged in the distribution and sale of electricity and claimed unabsorbed depreciation/current. AO made an addition on account of delay in deposit of employee's contribution towards CPF/GPF/ESI under section 36(1)(va). AO noted that there was delay in depositing of employee's contribution to CPF, GPF and ESI. Assessee had submitted that principles and provisions of section 36(1)(va) and section 43B were based on harmonious interpretation and similarity of objectives and consequent to omission of second proviso to section 43B and insertion of the new proviso regarding allowance of any sum paid by him as an employer subject to payment before due date of furnishing of the return should apply to section 36(1)(va) simultaneously. Held: As decided in assessee's own case, the said issues shave already been decided against the revenue by this Court vide judgment dt. 6-1-2014 passed in CIT v. M/s. State Bank of Bikaner and Jaipur (2014) 363 ITR 70 (Raj) : 2014 TaxPub(DT) 1436 (Raj-HC). Therefore, following the order in assessee's own case, addition made by AO on account of delay in deposit of employee's contribution towards CPF/GPF/ESI under section 36(1)(va) was to be deleted.

Followed:CIT v. M/s. Alom Extrusions Ltd. (2009) 319 ITR 306 (SC) : 2009 TaxPub(DT) 2109 (SC); CIT v. M/s. State Bank of Bikaner & Jaipur (2014) 363 ITR 70 (Raj) : 2014 TaxPub(DT) 1436 (Raj-HC); CIT v. AIMIL Ltd. (2010) 321 ITR 508 (Del) : 2010 TaxPub(DT) 1231 (Del-HC); CIT v. PM Electronics Ltd. (2008) 220 CTR (Del) 635 : (2008) 15 DTR (Del) 258 : 2009 TaxPub(DT) 1002 (Del-HC); CIT v. Dharmendra Sharma (2007) 213 CTR (Del) 609: (2008) 297 ITR 320 (Del) : 2008 TaxPub(DT) 1292 (Del-HC); CIT v. Sabari Enterprises (2008) 298 ITR 141 (Karn) : 2008 TaxPub(DT) 0782 (Karn-HC); Jaipur Vidyut Vitran Nigam Ltd. v. Dy. CIT 2009 TaxPub(DT) 1698 (Jp-Trib); Sunil Goel v. Asstt. CIT (2008) 118 TTJ 415 (Delhi) : 2008 TaxPub(DT) 2038 (Del-Trib); CIT v. Vinay Cement Ltd. (2007) 213 CTR (SC) 268 : 2007 TaxPub(DT) 1068 (SC) Applied: CIT v. Orbit Resorts (P) Ltd. 48 SOT 23 (URO); ACIT v. Ranabaxy Laboratories Ltd. (2011) 7 ITR (Trib) 161 (Del) : 2011 TaxPub(DT) 0272 (Del-Trib) and ACIT v. M/s. Anil Special Steel Industries Ltd., ITA No. 1100/JP/2011 : 2014 TaxPub(DT) 4388 (Jp-Trib).

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