SUICH INDUSTRIES PVT. LTD.,NEW DELHI vs. DCIT, CIRCLE- 24(2), NEW DELHI

The grievance of the assessee read as under :-

None appeared on behalf of the assessee inspite of notice we decided to proceed exparte. The DR was heard at length. Case records carefully perused.

During the course of the assessment proceedings on perusal of the tax audit report the AO noticed that there was a delay in depositing employees contribution to PF/ESI as under :-

Finding the delay the AO disallowed the sum of Rs.62320/- which was confirmed by the CIT(A).

This issue is no more res integra.

The sum and substances of the grievance in the captioned appeal pertains to the disallowance of PF and ESI payments on account of these payments being made beyond the due date specified under the specific parent legislation but before filing of the Income Tax Return.

Representative of the assessee and the DR fairly conceded that the issue in the captioned appeal is identical and on such concession the appeal were heard.

After carefully perusing the grievance in the captioned appeal, we are of the considered opinion that the issue is now well settled in favour of the assessee and against the revenue by the decision of the Hon’ble High Courts as follows :-

In the light of the decisions cited here in above, we direct the AO to delete the impugned disallowance in the hands of appellant.

In the light of the aforementioned judicial decisions we direct the AO to delete the addition of Rs.62320/-. This ground is accordingly allowed.

The AO on perusal of the details of interest payment found that the assessee has not deducted TDS on interest payment of Rs.2842756/- paid to NBFC’s details are as under and made addition of Rs.28,42, 756/- :-

Before the CIT(A) it was strongly contended that since the recipients have declared the interest income in their respective return of income, therefore, the conditions of section 201(1) of the Act have been complied and no disallowance should be made. The CIT(A) found that no supporting details have been furnished by the assessee and confirmed the addition.

We are of the considered view that since the assessee is claiming that the recipients NBFC’s have shown the interest as income in their respective returns of income then the assessee should get one more opportunity to substantiate its claim. In the interest of justice we restore this issue to the files of the AO. The assessee is directed to furnish necessary details as per provisions of the law and the AO is directed to examine the same and decide the issue afresh after giving a reasonable opportunity of being heard to the assessee.

In the result, the appeal filed by the assessee is allowed in part for statistical purpose.

Decision announced in the open court in the presence of Ld. Sr. DR.