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| The Tax Publishers2019 TaxPub(DT) 7591 (Ahd-Trib) INCOME TAX ACT, 1961
Section 36(1)(va)
Assessee should not be entitled to deduction of payments of Employee's Contribution to ESIC account if it was paid to the concerned account after the due date as specified under section 36(1)(va), though he deposits the same before the due date prescribed under section 43B i.e., prior to filing of return under section 139(1).
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Business disallowance under section 36(1)(va) - Allowability - Late payment of employee's contribution to Provident Fund (PF) and Employees' State Insurance Corporation (ESIC) -
Assessee had deducted PF contribution from its employees, but the same was not deposited in the Government account within the due date prescribed. AO with the aid of section 2(24)(x) read with section 36(1)(va) and following judgment of High Court in the case of CIT v. Gujarat State Road Transport Corporation (2014) 366 ITR 170 (Guj) : 2014 TaxPub(DT) 1235 (Guj-HC) disallowed the claim of the assessee. CIT(A) and Tribunal confirmed the action of AO. Held:High Court in the case of Gujarat State Road Transport Corporation Ltd. [(2014) 366 ITR 170 (Guj) : 2014 TaxPub(DT) 1235 (Guj-HC)] had held that assessee should not be entitled to deduction of payments of Employee's Contribution to ESIC account if it was paid to the concerned account after the due date as specified under section 36(1)(va), though he deposits the same before the due date prescribed under section 43B i.e., prior to filing of return under section 139(1). Therefore, there was no merit in of appeal assessee.
Followed:CIT v. Gujarat State Road Transport Corporation (2014) 223 Taxman 398 (Guj.) : 2014 TaxPub(DT) 1235 (Guj-HC) and M/s. Shine Pharmaceuticals Ltd. v. DCIT 2019 TaxPub(DT) 0966 (Ahd-Trib).
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 37(1)
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