Employees' PF and ESI contributions lose deduction when paid after statutory due dates, despite payment before return filing.

Employees' contribution to provident fund and ESI was held not deductible where payment was made after the due dates under the respective welfare enactments, even though it was deposited before the return filing date. The governing principle applied was that employee contributions must be remitted within the statutory due date under the PF and ESI laws to qualify for deduction. In view of the controlling Supreme Court ruling, the disallowance was sustained and the deduction claim was rejected.

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Issues: Whether employees' contribution to PF and ESI, deposited after the due date under the respective welfare enactments but before the due date for filing the return of income, was deductible.

Analysis: The amount in question was admittedly not deposited within the statutory due dates prescribed under the relevant PF and ESI laws, though it was deposited before the return filing date. The governing principle applied was that employees' contribution must be deposited within the due date under the respective Acts for deduction to be available. The disallowance was sustained in view of the controlling Supreme Court decision on the point.

Conclusion: The disallowance of employees' contribution to PF and ESI was upheld and the claim for deduction was rejected.

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