Employees' PF and ESI contribution disallowance restored for fresh verification of due-date compliance and wage-payment timing.

Employees' contribution to PF and ESI remains disallowable under section 36(1)(va) read with section 2(24)(x) when not credited within the due date under the welfare enactments, and the jurisdictional High Court view on that principle was not disputed. However, following a coordinate bench view that the timing issue may require verification with reference to the month of actual wage payment, the Tribunal found the record insufficient for final disposal and restored the matter to the Assessing Officer for fresh adjudication in accordance with law. The assessee received only statistical relief.

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Issues: Whether the disallowance of employees' contribution to PF and ESI under section 36(1)(va) read with section 2(24)(x) of the Income-tax Act, 1961 was sustainable, and whether the matter required fresh adjudication in light of the Tribunal's prior view on the relevant due date.

Analysis: The assessee did not dispute the binding jurisdictional High Court decision upholding disallowance where employees' contribution is not credited within the due date prescribed under the relevant welfare enactments. However, reliance was placed on the Tribunal's earlier view that, on identical facts, the question of delay may require examination with reference to the month of actual payment of wages, and the issue was restored to the Assessing Officer for verification. Following that coordinate bench view, the Tribunal held that the controversy could not be finally resolved on the present record and required fresh consideration by the Assessing Officer in accordance with law.

Conclusion: The disallowance issue was restored to the Assessing Officer for fresh adjudication, and the assessee obtained only statistical relief.

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