INCOME TAX ACT, 1961

Section 36(1)(va) Section 43B, Proviso

Businss deduction under section 36(1)(va) - Employees' contribution to ESI and PF - Payment beyond due date under relevant Acts but within due date under section 139(1) -

Assessee-company claimed deduction of payment made towards employees' contribution to ESI and PF. AO disallowed deduction on account of amount deposited beyond due date prescribed under relevant Acts. Assessee pleaded to have made payment before due date of filing of return under section 139(1). Held: Though employees' contribution to ESI and PF was deposited beyond due date prescribed under relevant Acts, however, payment was made within due date under section 139(1) and, therefore, no disallowance could be made in view of section 43B.

Followed:CIT v. Alom Extrusion Limited (2009) 185 Taxman 416 (SC) : 2009 TaxPub(DT) 2109; CIT v. JH Gotla (1985) 156 ITR 323 (SC) : 1985 TaxPub(DT) 1344 (SC) and CIT v. AIMIL Limited (2010) 188 Taxman 265 (Del-HC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

SUBSCRIBE FOR FULL CONTENT