INCOME TAX ACT, 1961

Section 36(1)(va)

Business deduction under section 36(1)(va) - Employees' contribution to PF and ESIC - Amount deposited before filing of return of income -

AO alleged that assessee's claim with respect to PF contribution and ESIC would not be allowable as deduction under section 36(1)(va) and he made addition of the same considering it as assessee's income as per provisions of section 2(24)(x). CIT (A) deleted the said addition made by AO. Aggrieved by the same, Revenue was in appeal. Held: As the Income Tax Act is concerned, the assessee can get benefit of deduction if the actual payment of PF contribution and ESIC is made before the return of income is filed, as per the principle laid down by the Supreme Court in case of CIT v. Vinay Cement Ltd. (2007) 213 CTR (SC) 268: 2007 TaxPub(DT) 1068 (SC). Since payment with respect to PF contribution and ESIC was made by assessee before filing of return of income, such payment made towards PF contribution and ESIC would be allowable as deduction under section 36(1)(va).

Relied:CIT v. Vinay Cement Ltd. (2007) 213 CTR (SC) 268: 2007 TaxPub(DT) 1068 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2013-14

INCOME TAX ACT, 1961

Section 43B

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