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| The Tax Publishers2021 TaxPub(DT) 2398 (Hyd-Trib) INCOME TAX ACT, 1961
Section 36(1)(va)
As decided in Gujarat State Road Transport Corporation [(2014) 366 ITR 170 (Guj.) : 2014 TaxPub(DT) 1235 (Guj-HC)] wherein it was held that where assessee had not credited the employees' Contribution to the employees' account in the relevant fund or funds on or before the due date mentioned in the Explanation to section 36(1)(va), assessee shall not be entitled to deduction of such amount in computing the income referred in section 28, thus following the same, assessee was not entitled to deduction for employee's contribution towards Provident Fund.
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Business disallowance under section 36(1)(va) - Late payment of employee's contribution to Provident Fund (PF) - Payment made before due date -
Assessee's claim of deduction for the assessment years 2017-18 and 2018-19 respectively was denied being the employee's contribution towards Provident Fund which was paid beyond the due date as specified in the Provident Fund Act. CIT(A) confirmed the orders of AO. Held: As decided in Gujarat State Road Transport Corporation [(2014) 366 ITR 170 (Guj.) : 2014 TaxPub(DT) 1235 (Guj-HC)] wherein it was held that where assessee had not credited the employees' Contribution to the employees' account in the relevant fund or funds on or before the due date mentioned in the Explanation to section 36(1)(va), assessee shall not be entitled to deduction of such amount in computing the income referred in section 28. Following the ratio laid down by High Court, assessee was not entitled to deduction for employee's contribution towards Provident Fund.
Followed:CIT v. Merchem Limited (2015) 378 ITR 443 (Ker) : 2015 TaxPub(DT) 3586 (Ker-HC), CIT v. Gujarat State Road Transport Corporation (2014) 366 ITR 170 (Guj-HC) : 2014 TaxPub(DT) 1235 (Guj-HC), BS. Patel v. DCIT (Assessment) (2010) 326 ITR 457 (MP) : 2010 TaxPub(DT) 0027 (MP-HC), CIT v. Jairam And Sons. (2004) 269 ITR 285 (Ker-HC) : 2004 TaxPub(DT) 1021 (Ker-HC), CIT v. GTN. Textiles Ltd. (2004) 269 ITR 282 (Ker-HC) : 2004 TaxPub(DT) 282 (Ker-HC), CIT v. South India Corporation Ltd. (2000) 242 ITR 114 (Ker-HC) : 2000 TaxPub(DT) 920 (Ker-HC) and Café D Lake Private Limited v. ITO [ITA No. 237/Hyd/2019 Order, dated 3-2-2021]
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2017-18 & 2018-19
IN THE ITAT, HYDERABAD BENCH
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