Employees' PF/ESI contribution paid late is not deductible under section 36(1)(va); section 43B cannot extend the due date.

Employees' contribution to PF/ESI deposited after the due date prescribed under the relevant welfare enactment is not deductible under section 36(1)(va) because it retains the character of income under section 2(24)(x). The extended time limit in section 43B, linked to filing the return, does not apply to employees' contribution. The disallowance was therefore sustained.

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Issues: Whether the assessee was entitled to deduction in respect of employees' contribution to PF/ESI deposited after the due date prescribed under the relevant welfare enactments.

Analysis: The appeal concerned disallowance under section 36(1)(va) of the Income-tax Act, 1961 read with section 2(24)(x) for delayed remittance of employees' contribution. The governing principle applied was that such contribution retains the character of income by virtue of section 2(24)(x) and deduction is available only if the amount is deposited on or before the due date prescribed under section 36(1)(va). The extended time limit under section 43B, linked to filing of the return, does not apply to employees' contribution.

Conclusion: The assessee was not entitled to the claimed deduction and the disallowance was sustained.

Ratio Decidendi: Employees' contribution to PF/ESI deposited after the due date under the relevant welfare enactment is not deductible under section 36(1)(va), and section 43B cannot be invoked to extend that due date.

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