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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE
Before: SHRI SUNIL KUMAR YADAV & SHRI A.K. GARODIA
Date of hearing : 12.10.2017 Date of Pronouncement : 31.10.2017 O R D E R
Per Sunil Kumar Yadav, Judicial Member
This appeal is preferred by the revenue against the order of the CIT(Appeals) inter alia on the following grounds:-
“1) The order of the learned CIT (A) is opposed to the law and facts of the case.
2) The learned CIT (A) erred in allowing belated remittance of employee's contribution to EPF / ESI as a deduction if it is paid before the due date for filing of the return of income as specified u/s 139(1) of the Act, whereas the employee's contribution to PF/ESI can be allowed as a deduction only if the payments were made within the specified due dates under PF /ESI Act.
3) The CIT (A) erred in not appreciating the fact that the belated remittance of employee's contribution to PF/ESI are to be treated as income of the assesses in terms of the provisions of Section 2(24)(x) r.w.s 36(1)(va) of the Act and therefore, the proviso to Section 43B is not applicable.
4) For these and any other grounds that may arise at the time of hearing, it is humbly prayed that the order of the CIT (A) be reversed on the above issue and that of the Assessing Officer may be restored.”
This appeal came up for hearing on 12.10.2017, but none appeared for the assessee.
Having carefully examined the grounds of appeal, we find that this appeal can be disposed of even in the absence of the assessee. We accordingly heard the appeal.
We have carefully perused the grounds of appeal and the order of CIT(Appeals) and we find that the CIT(Appeals) has adjudicated the issue, following the judgment of the Hon'ble jurisdictional High Court in the case of Sabari Enterprises, (2008) 298 ITR 141 having noted that the payments were made before the filing of return of income, therefore the expenditure is to be allowed u/s. 43B of the Act. Since the CIT(Appeals) has adjudicated the issue following the judgment of the Hon'ble jurisdictional High Court, we find no infirmity in the order of the CIT(Appeals). Accordingly the order of CIT(Appeals) is confirmed.
In the result, the appeal of the revenue is dismissed.
Pronounced in the open court on this 31st day of October, 2017.
Sd/- Sd/-
( A.K. GARODIA ) ( SUNIL KUMAR YADAV) Accountant Member Judicial Member Bangalore, Dated, the 31st October, 2017.