INCOME TAX ACT, 1961

Sections 36(1)(va) & 2(24)(x)

Business deduction under section 36(1)(va) - Employees' contributions of PF and ESI - Deposited after due date -

Assessee-company was engaged in business of electrical installation and commissioning activities. AO noted that the assessee deposited employees' contributions of PF and ESI after due date of deposit prescribed under the relevant statutory provisions of laws. Accordingly, the AO made addition under section 36(1)(via) read with section 2(24)(x). CIT(A) upheld the action of the AO. Held: In view of High Court decision in the case of CIT v. Gujarat State Road Transport Corporation (2014) 366 ITR 170 (Guj) : 2014 TaxPub(DT) 1235 (Guj-HC), section 43B is not applicable for delayed payments of employees' contribution to PF as under section 36(1)(via) read with section 2(24)(x). As assessee deposited employees' contributions of PF and ESI after due date of deposit prescribed under the relevant statutory provisions of laws; AO was therefore justified in making addition under section 36(1)(via) read with section 2(24)(x).

Followed: CIT v. Gujarat State Road Transport Corporation (2014) 366 ITR 170 (Gujarat) : 2014 TaxPub(DT) 1235 (Guj-HC).

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2013-14

INCOME TAX ACT, 1961

Section 40(a)(ia)

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