Provident fund and ESI deduction depends on timely deposit; due date runs from the wage month, not salary payment date.

Employees' contribution to provident fund and ESI is deductible only if credited to the relevant fund within the prescribed due date under the Income-tax Act; delayed deposit renders the deduction inadmissible, and the Tribunal was in applying the settled precedent against the assessee. The Court also held that, for the purpose of the fifteen-day deposit period under the provident fund law, the relevant month is the month for which wages are payable, not the date of actual salary disbursement, so the assessee's contrary argument failed. No error of law was found in the Tribunal's order, and interference was declined.

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Issues: (i) Whether the disallowance of employees' contribution to provident fund and ESI under section 36(1)(va) read with section 2(24)(x) of the Income-tax Act, 1961 was justified. (ii) Whether the due date for deposit of employees' contribution under the provident fund and ESI laws had to be reckoned from the date of actual salary payment.

Issue (i): Whether the disallowance of employees' contribution to provident fund and ESI under section 36(1)(va) read with section 2(24)(x) of the Income-tax Act, 1961 was justified.

Analysis: The issue was treated as covered by binding precedent of the Court holding that employees' contribution received by the employer must be credited to the relevant fund within the prescribed due date, failing which the deduction is not allowable. The Tribunal's view was found to be consistent with that settled position.

Conclusion: The issue was decided against the assessee and in favour of the Revenue.

Issue (ii): Whether the due date for deposit of employees' contribution under the provident fund and ESI laws had to be reckoned from the date of actual salary payment.

Analysis: The Court followed its earlier interpretation of section 38 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and held that the reference to deposit within fifteen days of the close of every month relates to the month for which wages are payable, not the date on which salary is actually disbursed. On that basis, the assessee's contention was rejected.

Conclusion: The issue was decided against the assessee and in favour of the Revenue.

Final Conclusion: No error of law was found in the Tribunal's order, and the appeal did not merit interference.

Ratio Decidendi: Employees' contribution to provident fund and ESI is deductible only if deposited within the prescribed due date, and the relevant monthly period is the month to which the wages relate, not the actual date of salary payment.

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