INCOME TAX ACT, 1961

Section 36(1)(va)

Business deduction under section 36(1)(va) - Delay in employee's contribution to Provident Fund (PF) and Employees' State Insurance Corporation (ESIC) - Only four instances where there was actual delay f rom due da te prescribed by Act -

AO made addition on account of disallowance of employees' contribution to PF and ESIC for violation of the provisions of section 36(1)(va) read with section 2(24)(x). It was the case of the assessee that such disallowances were not correct. Held: Out of all payments of employees' contribution to PF and ESIC, there were only four instances where there was actual delay from the due date prescribed by the Act. A chart containing such details of payments was also filed by assessee from which it appeared that an amount was paid late, i.e. on 14-8-2013 when the due date was 20-7-2013. The proofs of payments made towards employees' contribution of PF which was claimed to have been made within due date prescribed by PF Act, i.e. 20th of the next month. In that view of the matter, there was some force in submission made by assessee and matter was remanded back to AO to take into consideration the entire details filed by assessee regarding payment made towards employees contribution to PF and ESIC and to give relief to that particular amount which was paid in time as prescribed in the concerned acts.

Followed:CIT v. GSRTC (2014) 366 ITR 170 (Guj.) : 2014 TaxPub(DT) 1235 (Guj-HC)

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2014-15

INCOME TAX ACT, 1961

Section 92C

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