Employees' Provident Fund contributions allowed post due date; ITAT upholds CIT(A) decision.

The ITAT upheld the CIT(A)'s decision to delete the addition under section 43B for Employees' Contribution to Provident Fund. Citing the Delhi High Court decision in favor of the assessee, the ITAT dismissed the revenue's appeal, affirming that the contributions were allowable even if deposited after the due date.

---

---

Issues involved: Challenge to deletion of addition u/s 43B for Employees Contribution to Provident Fund.

Issue 1: Correctness of CIT(A) order

The revenue challenged the order of the CIT(A)-4 Mumbai dated 14.03.12 pertaining to AY 2008-09, specifically regarding the deletion of the addition of Rs. 17,90,191/- made u/s 43B on account of disallowance of Employees Contribution to Provident Fund.

Issue 2: Disallowance of PF and ESIC payments

The AO added back P.F. of Rs. 16,78,500/- and E.S.I.C. of Rs. 1,11,691/- to the income of the assessee u/s 36(1)(va) read with section 2(24)(x) due to late deposits of employee contributions towards P.F and E.S.I.C.

Issue 3: Assessee's claim and judicial decisions

The assessee contended that the contributions were deposited before filing the return and should be allowed. The CIT(A) relied on decisions like BDPA Software 340 ITR 375 to support the assessee's claim, which the revenue contested.

Issue 4: Tribunal decisions and High Court rulings

The DR supported the assessment order citing the Tribunal's decision in Bengal Chemical and the provisions of section 36(1)(va). The assessee referenced the Tribunal's decision in Sonic Biochem Extractions P. Ltd. 23 ITR (Trib.) 447 and the Hon'ble Supreme Court's decision in Alom Extrusions Ltd. 319 ITR 306 to support their case.

Issue 5: Delhi High Court decision

The ITAT considered the decision of the Hon'ble Delhi High Court in CIT vs. P M Electronics Ltd. 177 Taxman page -1, which settled the issue in favor of the assessee regarding the allowability of amounts paid on account of PF/ESI after the due date u/s 43B and section 36(1)(va).

Conclusion:

After considering the submissions, judicial decisions, and the Delhi High Court ruling, the ITAT confirmed the CIT(A)'s decision to delete the addition u/s 43B for Employees Contribution to Provident Fund. The appeal of the revenue was dismissed accordingly.

---