Provident fund deduction depends on the statutory due date, and section 43B cannot override delayed payment treatment.

Provident fund contributions received by an employer for remittance to the relevant fund remain deductible only if paid within the due date prescribed in the Explanation to section 36(1)(va). Where payment is made after that prescribed date, the deduction cannot be claimed merely on an actual-payment basis, and section 43B does not override that restriction in the manner suggested. Applying binding precedent, the Kerala HC answered the issues against the assessee and in favour of the Revenue.

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Issues: Whether the assessee was entitled to deduction of provident fund contribution on actual payment basis notwithstanding non-payment before the due date, and whether the claim had to be considered under section 43B without reference to the second proviso.

Analysis: The questions were answered in the light of binding precedent holding that the due date in the Explanation to section 36(1)(va) governs the deductibility of provident fund contributions received by the employer for remittance to the relevant fund. On that basis, the assessee could not claim the deduction merely on actual payment basis after the prescribed due date, and the claim could not be sustained by invoking section 43B in the manner suggested.

Conclusion: The questions were decided against the assessee and in favour of the Revenue.

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