INCOME TAX ACT, 1961

Section 36(1)(va)

Business deduction under section 36(1)(va) - Employee's contribution towards PF/ESI - Deposited beyond the due date as prescribed under the relevant statute governing PF/ESI but within the due date prescribed for filing of return of income under section 139(1) -

Issue was as regards allowability of employee's contribution received from its employees towards PF/ESI, which was deposited with PF/ESI authorities beyond time stipulated under the relevant PF/ESI Act but was deposited within the time stipulated for filing of return of income under the provisions of section 139(1). Held: Issue was decided in favour of assessee by holding that employee's contribution towards PF/ESI received by assessee from its employees, which were deposited beyond the due date as prescribed under the relevant statute governing PF/ESI but was deposited within the due date prescribed for filing of return of income under section 139(1) of the Income Tax Act, 1961 shall be allowed as deduction while computing income of assessee under Chapter IV-D under the head 'Profits and Gains from Business or Profession'.

Followed:M/s. Unifac Management Services (India) (P) Ltd. v. Dy. CIT (W.P. No. 5264 of 2018 and WMP No.6461 of 2018, delivered on 23-10-2018) : 2018 TaxPub(DT) 7567 (Mad-HC) M/s. Unifac Management Services (India) (P) Ltd. v. Dy. CIT [Writ Appeal No.2854 of 2018 & CMP.No.23727 of 2018, dt. 9-1-2019] Dy. CIT v. M/s. Repco Home Finance (P) Ltd. (2020) 183 ITD 782 (Chennai-Trib.) : 2020 TaxPub(DT) 2537 (Chen-Trib)

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