Appeal outcome: Disallowance under section 43B overturned, PF contribution disallowance upheld.

The Tribunal partly allowed the appeal in ITA No. 279/Kol/2023, dismissing the disallowance under section 43B but upholding the disallowance of employees' contribution to PF. The appeal in ITA No. 278/Kol/2023 was dismissed entirely.

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Issues Involved:
The judgment involves two appeals related to Assessment Year 2018-19. The common issues raised in both appeals are the disallowance under section 43B of the Act for non-payment of outstanding amounts and the disallowance of employees' contribution towards PF.

Disallowance under Section 43B of the Act:
The appellant argued that the alleged sum had been paid before the due date of filing the return, thus no disallowance was warranted under section 43B. The details provided by the appellant showed that the amounts towards ESI, PF, CGST, and SGST had been paid before the due date of filing the return. The Tribunal found merit in the appellant's contention and held that the disallowance under section 43B was not applicable. Consequently, the addition of Rs. 4,38,526 was deleted.

Employees' Contribution to PF:
The appellant claimed that the payments towards employees' contribution to PF were made before the due dates. However, the Tribunal disagreed, stating that the payments were made after the due dates for depositing the said sums. Referring to a recent Supreme Court decision, the Tribunal held that the sum was not allowable under section 36(1)(va) of the Act and deemed it as income under section 2(24)(x) of the Act. As a result, this ground raised by the appellant was dismissed.

Conclusion:
The Tribunal dismissed the appeal in ITA No. 278/Kol/2023 and partly allowed the appeal in ITA No. 279/Kol/2023. The judgment was pronounced on 30th May, 2023, in Kolkata.

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