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| The Tax Publishers2021 TaxPub(DT) 0464 (Jp-Trib) INCOME TAX ACT, 1961
Section 43B
Where assessee deposited employees' contributions to PF and ESI beyond the prescribed time limit provided in respective Acts but before due date of filing of return of income, the disallowance made for delay in depositing employees' contribution to PF and ESI would not be sustainable.
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Business disallowance under section 43B - Employees' contribution to PF and ESI - Assessee deposited contributions beyond prescribed time limit but before due date of filing return -
Assessee-State Government undertaking was engaged in distribution and sale of electricity. AO made disallowance for depositing employees' contribution to PF & ESI beyond the prescribed time limit provided in respective Acts. Held: Employees' contribution to PF and ESI are governed by provisions of section 43B and not by section 36(1)(va) read with section 2(24)(x). Since assessee deposited employees' contributions to PF and ESI beyond the prescribed time limit provided in respective Acts but before due date of filing of return of income, the disallowance made for delay in depositing employees' contributions to PF and ESI was not sustainable.
REFERRED : K.S. Automobiles Pvt. Ltd. ITA No. 1184/JP/2018 and 1185/JP/2018 Order, dated 08-3-2019, Pr. CIT v. Rajasthan State Seed Corporation Limited (2016) 386 ITR 267 (Raj) : 2016 TaxPub(DT) 3851 (Raj-HC) and Pr. CIT v. Rajasthan State Beverages Corporation Ltd. (2017) 250 taxman 16 (SC) : 2017 TaxPub(DT) 3917 (SC).
FAVOUR : In assessee's favour.
A.Y. : 2016-17
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