The Tax Publishers2019 TaxPub(DT) 6662 (Ctk-Trib)

INCOME TAX ACT, 1961

Section 36(1)(va)

Assessee would not be entitled to claim deduction for employees' contribution towards EPF, which was deposited beyond the period prescribed in the relevant statute.

Business deduction under section 36(1)(va) - Employees' contribution towards EPF - Deposited beyond due date -

AO did not allow deduction for employees' contribution towards EPF, which was deposited beyond the period prescribed in the relevant statute but before the due date of filing return under section 139(1). CIT (A) upheld such decision of AO. Held: Although it was not in dispute that employees' contribution to EPF was deposited by assessee before due date of filing return of income under section 139(1) but CBDT Circular No. 222015 dt. 17-12-2015 provides that deduction relating to employee's contribution to welfare fund is governed by section 36(1)(va). Further, as per Employees' Provident Funds Act, 1952, in respect of EPF Scheme contributions, the deductions were to be deposited within 15 days of the succeeding wage period with a grace period of 5 days. Accordingly, the matter was restored to AO to examine the contributions made with reference to the dates when they were actually made and grant relief to such of claim which qualified for such relief in terms of prevailing provisions of the Act.

Relied:CIT v. Bharat Hotels Ltd. (2019) 103 Taxmann.com 295 (Del) : 2018 TaxPub(DT) 5987 (Del-HC)

REFERRED :

FAVOUR : In assessee's favour by way of remand

A.Y. :


INCOME TAX ACT, 1961

Section 37(1)

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