ACIT, CHENNAI vs. M/S. CHOLA BUSINESS SERVICES LTD., CHENNAI

This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals) -1, Chennai, dated 16.08.2016 and pertains to assessment year 2012-13.

The first issue arises for consideration is disallowance made by the Assessing Officer under Section 14A of the Income-tax Act, 1961 (in short 'the Act').

We heard Shri AR.V. Sreenivasan, the Ld. Departmental Representative. No one appeared for the assessee even though the notice of hearing was served on it. The CIT(Appeals) found that the assessee has not received any exempted income on making investment. This Tribunal is of the considered opinion that when the assessee has not earned any exempted income, in view of the judgment of Madras High Court in Redington (India) Ltd. v. Addl.

The next issue is with regard to employees’ contribution towards ESI.

Admittedly, the assessee has not paid the amount within the due date prescribed under Provident Fund Act. But, it was the fact that the assessee paid the contribution within the due date for filing return under Section 131(1) of the Act. Therefore, the CIT(Appeals) has rightly allowed the claim of the assessee. Hence, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.

In the result, the appeal filed by the Revenue is dismissed.