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| The Tax Publishers2021 TaxPub(DT) 5557 (Del-Trib) INCOME TAX ACT, 1961
Section 36(1)(va)
Since there was delay in deposit of ESI and EPF contribution but the same were deposited with the appropriate authorities before due date of filing of return of income, therefore, no disallowance was to be made under section 36(1)(va).
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Business deduction under section 36(1)(va) - Delay in deposit of employees contribution to Provident Fund (PF) and Employees' State Insurance Corporation (ESIC) - Some deposited before due date of filing -
During the course of assessment proceedings, AO noticed that certain payments towards employees contributions to PF and ESI were deposited after the due date prescribed under the relevant Act. AO held that the aggregate delayed payment of the employees contribution to ESI/PF cannot be allowed as deduction. He accordingly made its addition under section 2(24)(x) read with section 36(1)(va).Held: CIT(A) while deciding the issue in favour of the assessee had given a finding that though there was delay in deposit of ESI and EPF contribution but the same were deposited with the appropriate authorities before due date of filing of return of income. Therefore, no disallowance was to be made under section 36(1)(va).
Relied:CIT v. Merchem Ltd. (2015) 378 ITR 443 (Ker) : 2015 TaxPub(DT) 3586 (Ker-HC). Followed:CIT v. AIMIL Limited (2010) 321 ITR 508 (Del-HC) : 2010 TaxPub(DT) 1231 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
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