Provident fund contribution disallowance deleted where payments were made within the scheme due date, despite an erroneous audit report.

Disallowance of employees' provident fund contribution under section 36(1)(va) was deleted because the assessee showed that payments were made within the due date prescribed by the Coal Mines Provident Fund Scheme, 1948. Rule 33A(2) required deposit on or before the last day of the month following the relevant month, and the Tribunal accepted that the amounts were paid within that time. Reliance on an audit report carrying an incorrect due date was insufficient, and the appellate authority was required to verify the actual payment dates and decide the issue on merits. Relief was therefore granted on the provident fund claim.

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Issues: Whether the disallowance of employees' contribution to the provident fund under section 36(1)(va) was sustainable when the assessee showed that the payments were made within the due date prescribed under the applicable Coal Mines Provident Fund Scheme.

Analysis: The dispute turned on the correct due date for deposit of employees' and employer's contributions in respect of persons covered by the Coal Mines Provident Fund Scheme, 1948. The assessee demonstrated with reference to Rule 33A(2) of the Scheme that the contributions were payable on or before the last day of the month following the month to which they related, and that the amounts in question had in fact been deposited within that time. The disallowance had been sustained below by relying on an audit report that contained an erroneous due date, without verifying the actual dates of payment. The Tribunal held that once the assessee produced material showing the factual error, the appellate authority was bound to examine the actual payments and decide the issue on merits.

Conclusion: The disallowance was not sustainable and was deleted.

Final Conclusion: The appeal succeeded, and the assessee was granted relief on the claim relating to provident fund contribution.

Ratio Decidendi: A disallowance under section 36(1)(va) cannot be sustained where the assessee establishes that the contribution was deposited within the due date prescribed under the applicable provident fund scheme, and the authority must verify the actual facts rather than rely mechanically on an erroneous audit report.

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