Provident fund contribution within the scheme grace period remained deductible, with no substantial question of law arising.

Employees' provident fund contribution remitted after the statutory due date but within the five-day grace period under the Provident Fund Scheme remained deductible under section 36(1)(va) of the Income-tax Act, 1961. The Tribunal's view was that payment within the permitted grace period did not justify disallowance on the facts, and the High Court found no reason to interfere. It therefore held that the revenue's appeals did not raise any substantial question of law and dismissed them, leaving the deduction intact.

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Issues: Whether employees' provident fund contribution paid after the statutory due date but within the permissible grace period under the Provident Fund Scheme was entitled to deduction under section 36(1)(va) of the Income-tax Act, 1961.

Analysis: The contribution, though remitted beyond the usual due date, was made within the five-day grace period allowed under the scheme. The Tribunal had proceeded on the basis that the belated payment fell within the permitted time and that there was no warrant for disallowance in the facts of the case. The Court found no reason to interfere and held that the appeals did not raise any substantial question of law.

Conclusion: The employees' provident fund contribution paid within the grace period was allowable as a deduction, and the revenue's appeals were dismissed.

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