THE COMMISSIONER OF INCOME TAX Vs. MERCHEM LIMITED

JUDGEMENT

(1.) This appeal is preferred by the Revenue against the order of the Income Tax Appellate Tribunal, Cochin Bench in I.T.A. No.8/2014 dated 09.05.2014 for the assessment year 2010- 11, by which the Tribunal has affirmed the order of the C.I.T (Appeals) and deleted an amount of Rs.34,41,659/- added by the Assessing Officer under Sec.36(1)(va) r/w Sec.2(24)(x).

(2.) Brief facts necessary for the disposal of this appeal are as follows:

(3.) Aggrieved by the order of the Assessing Officer, Respondent took up the matter before the Appellate Authority, basically contending that the Assessing Officer was not justified in disallowing the expenditure of employees' contribution invoking provisions of Sec.36(1)(va). It was further contended that the ratio of the decision of the Hon'ble Apex Court in the case of C.I.T. v. Alom Extrusions Ltd. , 2009 319 ITR 306 was not followed by the Assessing Officer. After evaluating the facts and circumstances, following the decision of the Hon'ble Apex Court in C.I.T. v. Vinay Cement Ltd. ,2007 213 CTR(SC) 268 , the first appellate authority held that contribution towards Provident Fund and ESI were made before the due date of filing of return and therefore the same are entitled for deduction under Sec.43B of the Income Tax Act. Therefore the addition made by the Assessing Officer in that regard was deleted.