PF and ESI employee contributions paid before return filing due date remain deductible despite late welfare-law remittance.

Employees' contribution to provident fund and ESI paid after the welfare-law due date but before the due date for filing the return of income was held deductible. The Tribunal read the restriction in section 36(1)(va) together with section 43B(b) and, following its earlier decision and cited precedents, treated timely payment before filing the return as sufficient for allowance. Deduction could not be denied merely because remittance was delayed under the respective welfare enactments, and the disallowance was therefore not sustainable.

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Issues: Whether employees' contribution to provident fund and ESI, though remitted after the due date under the respective welfare laws, was deductible when paid before the due date for filing the return of income.

Analysis: The Tribunal followed its earlier decision in the assessee's own case and the cited judicial precedents, holding that for purposes of deduction there was no material distinction between employees' and employer's contribution where the amount had been paid before the due date under section 139(1). The bar under section 36(1)(va) was read in the context of section 43B(b), and the payment made before filing the return was treated as sufficient for allowance of deduction.

Conclusion: The disallowance was not sustainable and the assessee was entitled to deduction of the employees' contribution paid before the due date of filing the return.

Final Conclusion: The revenue's challenge failed, and the allowance of the assessee's claim was sustained.

Ratio Decidendi: Where employees' contribution to provident fund or ESI is paid before the due date for filing the return of income, deduction cannot be denied merely because the payment was made after the due date under the welfare enactment.

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