Dy.Cit., Circle-4,, Ahmedabad vs Gujarat State Road Transport Corpn. , ... on 28 April, 2017
21. Karnataka High Court had an occasion to
consider, whether it should dissent with the view
taken in the earlier judgments and follow the view
taken by Gujrat High Court in Commissioner of
Income Tax Vs Gujrat State Road Transport
Corporation (supra) and this occasion came in
Essae Teraoka P. Ltd. Vs Deputy Commissioner
of Income Tax, (2014) 366 ITR 408. Dispute
relates to A.Y. 2008-09. Assessee filed Return on
26.09.2008. Return was processed under Section
143(1) and thereafter on scrutiny, notice under
Page 8 of 17
Section 143(2) was issued. Assessing Officer
completed assessment by order dated 24.12.2010
under Section 143(3) disallowing Rs.12,51,737/-
under Section 36(1)(va) and also disallowing
Rs.1,04,621/- under Section 14A read with Rule 8D.
In appeal, CIT (A) reversed findings of Assessing
Officer but on appeal preferred by Revenue, Tribunal
restored Assessing Officer's order and that is how
matter came to Karnataka High Court. The question
up for consideration was, "whether Tribunal was
justified in affirming finding of Assessing Officer and
denying Assessee's claim of deduction of employees
contribution to PF/ESI alleging that the payment was
not made by appellant in accordance with the
provisions of Section 36(1)(va) of Act 1961."