2017 (1) TMI 42

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....baneswar dated 8th July, 2016, for the assessment 2012-2013. 2. The sole issue involved in this appeal is that the ld CIT(A) erred in confirming the disallowance of employees contribution to PF and ESI amounting to Rs. 4,02,695/- in view of the fact that the said amounts were not deposited before the due date under the respective Act. 3. Ld A.R. of the assessee has filed an adjournment petition,....

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....ae Teraoka (P) Ltd.vs DCIT, (2014) 366 ITR 408 vide judgment dated 4.2.2014 held that the word contribution would mean in EPF and ESI Act refers to both employees and employers contribution to PF and, therefore, no disallowance is to be made under section 43B. Therefore, deduction is also available to employee's contribution to PF U/S.43B of the Act. Further, the Hon'ble Rajasthan High Court in th....

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....3B does not apply to employees contribution and only section 2(24)(x) read with section 36(1)(va) is applicable, which is relied upon by ld CIT(A) in his order for confirming the disallowance. Therefore, employee's contribution is disallowed if not paid within the due date as per EPF/ESI Act. The said decision was rendered after considering the decision of Hon'ble Supreme Court in the case of Alom....

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....allowed for filing the return u/s.139(1) will not call for any disallowance u/s.36(1)(va) 7. It is also settled position of law that if there are contrary views of different High Courts and none of them is the Hon'ble Jurisdictional High Court, then the decision favourable to the assessee should be followed. My view is supported by the decision of Hon'ble Supreme Court in the case of CIT vs. Vege....