Assessee is a company  engaged in business of manufacturing, supply, erection and commissioning of pollution control equipments.  During year, assessee claimed expenses under head product development expenses.  Assessing Officer held  that expenses were incurred for product development which would give enduring benefit to assessee and, accordingly, he disallowed same. CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that   none of expenditure incurred thereon would give any enduring benefit to assessee. All these expenditure were genuine regular revenue expenditure incurred by assessee. Assessee had been using its own employees and material regularly purchased for its manufacturing facilities on proportionate basis for purpose of development of new product and, thus, said expenditure is  purely revenue in nature. Held that liquidated damages were paid by assessee only as part of non-fulfillment of contractual obligation as per terms of contract with customers and, hence, same were to be allowed as expenditure.  Employees’ contribution to PF and ESI would not be allowable in case of assessee-employer if it was remitted beyond due date prescribed under respective Acts.  (AY. 2016-17)