The Tax Publishers2021 TaxPub(DT) 0491 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 36(1)(va)

Employees' contributions to the Employees' Provident Fund (EPF)/ Employees' State Insurance (ESI) deposited beyond the due date prescribed under section 36(1)(va) would not be eligible for deduction even if deposited before the due date of filing the tax return, therefore, assessee would not be entitled for deduction under section 36(1)(va).

Deduction under section 36(1)(va) - Delay in employees' contributions to PF and ESI - Allowability -

Assessee was engaged in the business of contract sales and market and trading in pharmaceutical products. AO observed that assessee had not made payment towards the contribution of employees' PF within the due date, i.e., provident fund amount which was to be deposited on 15-1-2015 was actually deposited on 22-1-2015 only. Assessee submitted that though the payment towards employees' contribution of PF was not deposited within the due date, but the same was deposited before the date of filing of return. However, AO did not accept this submission of assessee and disallowed the claim of assessee. Held: In the case of Gujarat State Road Transport Corporation Ltd. [2014 TaxPub(DT) 1235 (Guj-HC)] it was held that employees' contribution to the Employees' Provident Fund (EPF)/ Employees' State Insurance (ESI) deposited beyond the due date prescribed under section 36(1)(va) would not be eligible for deduction even if deposited before the due date of filing the tax return. Therefore, assessee would not be entitled for deduction under section 36(1)(va).

Followed:Checkmate Facility & Electronic Solutions Pvt. Ltd. v. Dy. CIT 2018 TaxPub(DT) 6737 (Guj-HC), Pr. CIT v. Rajasthan State Beverages Corpn. Ltd. 2017 TaxPub(DT) 4665 (Raj-HC), CIT v. Gujarat State Road Transport Corporation 2014 TaxPub(DT) 1235 (Guj-HC) and CIT v. Vinay Cement Ltd. (2007) 213 CTR 268 (SC) : 2007 TaxPub(DT) 1068 (SC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2015-16


INCOME TAX ACT, 1961

Section 36(1)(va)

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