https://www.taxtmi.com/caselaws?id=460206 ITAT Delhi held that delayed PF/ESI contributions cannot be claimed as deductions under Section 37(1) when specifically covered under Section 36(1)(va). The tribunal clarified that Section 37(1) permits deduction of expenditure not covered in Sections 30-36, thus excluding PF/ESI contributions already governed by Section 36(1)(va). Citing SC precedents in Checkmate Pvt. Ltd. and Khyati Realtors, ITAT rejected the alternate plea for general deduction. However, regarding the methodology for calculating default periods under PF/ESI Acts, the tribunal noted insufficient examination by lower authorities on whether salary accrual or actual disbursement determines deposit obligations. Consequently, ITAT set aside the Section 143(1) intimation and restored the matter to AO for fresh adjudication with proper opportunity of hearing. en-us Tue, 18 Jul 2023 00:00:00 +0530 Wed, 15 Jan 2025 13:46:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460206 ITAT Delhi held that delayed PF/ESI contributions cannot be claimed as deductions under Section 37(1) when specifically covered under Section 36(1)(va). The tribunal clarified that Section 37(1) permits deduction of expenditure not covered in Sections 30-36, thus excluding PF/ESI contributions already governed by Section 36(1)(va). Citing SC precedents in Checkmate Pvt. Ltd. and Khyati Realtors, ITAT rejected the alternate plea for general deduction. However, regarding the methodology for calculating default periods under PF/ESI Acts, the tribunal noted insufficient examination by lower authorities on whether salary accrual or actual disbursement determines deposit obligations. Consequently, ITAT set aside the Section 143(1) intimation and restored the matter to AO for fresh adjudication with proper opportunity of hearing. Case-Laws Income Tax Tue, 18 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460206