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| The Tax Publishers2021 TaxPub(DT) 3954 (Kol-Trib) INCOME TAX ACT, 1961
Section 36(1)(va)
Since assessee deposited the amount of employees contribution to PF and ESI before the due date of filing of return of income under section 139(1) and following the decision jurisdictional High Court in case of CIT v. Vijay Shree Ltd. 2014 TaxPub(DT) 4825 (Cal-HC), addition made by AO under section 36(1)(va) could not be sustained.
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Business deduction under section 36(1)(va) - Delay in depositing employee contribution of Provident Fund (PF) and Employee' State Insurance Corporation (ESIC) - Assessee deposited employee contributiion before filing of return -
Assessee filed this appeal contending that AO was not justified in making addition on account of delayed deposit of employees contribution to PF and ESI under section 36(1)(va) read with section 2(24)(x), despite the fact that assessee deposited the same before the due date of filing of return of income under section 139(1). CIT(A) upheld the same. Held: CIT(A) erred in denying the claim of assessee since assessee delayed in deposit of the employees contribution of EPF and ESI fund and as per the decision of High Court in CIT, Circle-I, Kolkata v. Vijay Shree Limited (2014) 43 taxman.com 396(Cal) : 2014 TaxPub(DT) 4825 (Cal-HC) under section 36(1)(va) since assessee had deposited the employees' contribution before filing of Return of Income, therefore, no addition could be made against assessee.
Followed:CIT- I v. Income Tax Settlement Commission & Anr. (2016) 390 ITR 306 (Guj) : 2016 TaxPub(DT) 3741 (Guj-HC), CIT, Circle-I, Kolkata v. Vijay Shree Limited (2014) 43 taxman.com 396(Cal) : 2014 TaxPub(DT) 4825 (Cal-HC) and Asstt. CIT v. Vijay Shree Ltd. 2014 TaxPub(DT) 0843 (Kol-Trib) .
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2019-20
IN THE ITAT KOLKATA BENCH
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