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| The Tax Publishers2022 TaxPub(DT) 0202 (Jp-Trib) INCOME TAX ACT, 1961
Section 36(1)(va) Section 43B
Where Employees' contributions to ESI and PF collected by the assessee from its employees have been deposited well before the due date of filing of return of income under section 139(1), therefore, addition made by the CPC towards the deposit of the employees's contributions towards ESI and PF though paid before the due date of filing of return of income under section 139(1) was hereby directed to be deleted.
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Business deduction under section 36(1)(va) - Late payment of employees' contributions to Provident Fund (PF) and Employees' State Insurance (ESI) - Though paid before due date of ITR -
AO made disallowance towards employees' contribution towards ESI and EPF. CIT(A) confirmed the disallowance made under section 143(1) on account of assessee's failure to pay the employees' contribution of PF/ESI within the prescribed due dates as per section 36(1)(va). On appeal before Tribunal, it was submitted that Explanation 2 added to section 36(1)(va) would take effect from 1-4-2021 and would apply from assessment year 2021-22 Held: Employees' contribution to ESI and PF collected by the assessee from its employees have been deposited well before the due date of filing of return of income under section 139(1). Therefore, addition by way of adjustment while processing the return of income under section 143(1) so made by the CPC towards the deposit of the employees' contribution towards ESI and PF though paid before the due date of filing of return of income under section 139(1) was directed to be deleted.
Followed:Allied Motors (P) Ltd. v. CIT 1997 TaxPub(DT) 1147 (SC), Pr. CIT v. M/s. Rajasthan State Beverages Corpn. Ltd. (2017) 392 ITR 2 (Raj) : 2017 TaxPub(DT) 4665 (Raj-HC), CIT v. M/s. State Bank of Bikaner & Jaipur (2014) 43 taxmann.com 411 (Raj) : 2014 TaxPub(DT) 1436 (Raj-HC), CIT v. Jaipur Vidyut Vitran Nigam Ltd. 2014 TaxPub(DT) 1578 (Jp-Trib), CIT v. M/s. Udaipur Dugdh Utpadak Sahakari Sangh Ltd. 2014 TaxPub(DT) 3815 (Raj-HC) and Shri Gopalakrishna Aswini Kumar v. Asstt. DIT [ITA No. 359/Bang/2021, dated 12-10-2021]
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2018-19
IN THE ITAT, JAIPUR BENCH
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