Employees' PF and ESI contribution deduction denied for late deposit under the statutory due date rule.

Employees' contribution to PF and ESI is deductible only if credited to the relevant welfare fund on or before the due date under the applicable labour statute. The jurisdictional High Court's binding view was followed, holding that belated deposit of employees' contributions does not satisfy the statutory condition for deduction. Applying that principle, the disallowance of the employees' PF and ESI contributions deposited after the prescribed due date was upheld.

---

---

Issues: Whether employees' contribution to PF and ESI, deposited after the due date prescribed under the relevant statute, was allowable as a deduction.

Analysis: The issue was covered by the binding decision of the jurisdictional High Court, which held that employees' contribution credited to the relevant fund only on or before the due date under the concerned welfare legislation qualifies for deduction. Where the contribution is deposited belatedly, the disallowance is justified.

Conclusion: The disallowance of employees' contribution to PF and ESI paid after the statutory due date was upheld and the appeal failed.

---