The Income Tax Appellate Tribunal (ITAT), Bangalore Bench while upholding the order passed by the CIT(A) allowed the deduction to the assessee, Cafe Coffee Day in respect of belated payment of Employee’s contribution to PF.
The revenue filed the appeal against the order passed by CIT(A) allowing deduction in respect of belated payment of Employee’s contribution to PF Rs. 43,484 in Assessment Year 2011-12 and Rs. 26,73,156 in Assessment Year 2012-13.
The revenue further raised issue on deletion of disallowance of Rs. 235,60,711 in Assessment Year 2011-12 and Rs.146,80,683 in Assessment Year 2012-13 being the interest on capital work in progress and in Assessment Year 2012-13.
The two-member bench of Judicial Member Beena Pillai and Accountant Member A.K. Garodia found that the issue is squarely covered in favour of the assessee in the light of the judgment of Karnataka High Court rendered in the case of CIT vs. Sabari Enterprises and following the same, the tribunal declined to interfere in the order of CIT(A) on this issue and upheld the deduction in respect of belated payment of Employee’s contribution to PF.
The tribunal reversed the order of CIT (A) on issue in respect of issue on deletion of disallowance being the interest on capital work in progress in both years and restored that of the AO.
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