Gilco Exports Ltd. v. ACIT (2019) 178 ITD 865 / (2020) 204 TTJ 218 (Chd.)(Trib.)

S. 36(1)(va) : Any sum received from employees–Deposited EPF and ESI contribution late but before due date of filing return-Entitle to deduction- Binding precedent-When decision of jurisdictional High Court is available on issue -Non jurisdictional High Court cannot be followed. [S.139(1), Art.227].

Assessee deposited EPF and ESI contribution late but before due date of filing return. AO invoking provisions of S.36(1)(va) made addition of that amount. CIT (A) upheld addition relying upon decision of Gujarat High Court in case of CIT v. Gujarat State Road Transport Corp ( 2014) 366 ITR 170 (Guj.)(HC) ignoring the jurisdictional High Court in  CIT v. Hemla Embroidery Mills (P) Ltd. [2014] 366 ITR 167 (Punj. & Har.)(HC). Tribunal held that when there is judgement of jurisdictional High Court for any authority within its territorial jurisdiction subjected to its superintendence, decision rendered by High Court is a binding precedent to be followed. (AY. 2013-14)