INCOME TAX ACT, 1961

Section 36(1)(va)

Business deduction under section 36(1)(va) - Validity - Employer's contributions to PF and ESI -

AO made disallowance being employees' contributions to PF and ESI under section 36(1)(va). Assessee contended that payment was made within the due date specified under section 139(1). Held: This issue is covered in favour of the assessee by the various decisions of the jurisdictional High Court including the decision in case of CIT v. State Bank of Bikaner & Jaipur [(2014) 99 DTR 131 (Raj) : 2014 TaxPub(DT) 1436 (Raj-HC)] as well as decision in case of CIT v. Jaipur Vidyut Vitran Nigam Ltd. [(2014) 363 ITR 307 (Jp) : 2014 TaxPub(DT) 1578 (Jp-Trib)] and in case of CIT v. Udaipur Dugdh Utpadak Sahakari Sangh Ltd. [(2014) 366 ITR 163 (Raj) : 2014 TaxPub(DT) 3815 (Raj-HC)]. This issue was decided in favour of the assessee and against the Revenue. Hence, disallowances/additions made by AO on account of employees' contributions to PF and ESI were deleted.

Followed:Pr. CIT v. M/s. Rajasthan Renewable Energy Corp. Ltd. [ITA No. 10,11 & 12/2018, dated 13-3-2018] : 2018 TaxPub(DT) 3193 (Raj-HC) Pr. CIT v. Rajasthan State Seed Corporation Ltd. (2016) 386 ITR 267 (Raj) : 2016 TaxPub(DT) 3851 (Raj-HC) CIT v. Jaipur Vidyut Vitran Nigam Ltd. (2014) 363 ITR 307 (Jp) : 2014 TaxPub(DT) 1578 (Jp-Trib) Commissioner of Income Tax v. M/s. State Bank of Bikaner & Jaipur and Jaipur Vidyut Vitaran Nigam Ltd. (2014) 99 DTR 131 (Raj) : 2014 TaxPub(DT) 1436 (Raj-HC) CIT v. M/s. Udaipur Dugdh Utpadak Sahakari Sangh Ltd. (2014) 366 ITR 163 (Raj) : 2014 TaxPub(DT) 3815 (Raj-HC) and Pr. CIT v. M/S. Rajasthan State Beverages Corpn. Ltd (2017) 250 taxmann 16 (SC) : 2017 TaxPub(DT) 3917 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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