TaxTMI 
TaxTMI 
2018 (8) TMI 1185
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.... Act, 1961 (hereinafter referred to as "the Act") dated 07.12.2016 relevant to Assessment Year (AY) 2014-15. 2. The grounds of appeal raised by the assessee are as under:- "1.1 That on the facts and in the circumstances of the case and as per law, learned CIT (Appeals) erred in sustaining the disallowance, of Rs. 33,95,734/- under section 36(1)(va) of the Income-tax Act, 1961. 1.2 That learned CIT (Appeals) was ought to have consider the fact appellant had discharged its liability within the prescribed time limit as per the provisions of section 43B i.e. EPF & ESI were deposited, in respective accounts, before the due date of filing the Return of Income under section 139(1). Hence, no disallowance under section 36 (1)(v....
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....ssee. 5. Aggrieved, assessee preferred an appeal to ld. CIT(A) who has confirmed the order of AO. Being aggrieved by order of Ld. CIT(A) assessee is in the second appeal before us. The ld. AR before us conceded the fact that the issue is covered against the assessee by the Hon'ble Gujarat High Court in the case of CIT vs. GSTRC reported in 41 taxmann.com 100. However, the ld. AR before us further submitted that the due date for the depositing the amount of employees contribution towards PF/ESI is to be seen from the relevant month, in which salary was paid to the employees and not from the month in which salary became due. The ld. AR in support of his claim relied on the order of this jurisdictional Tribunal in the case of Suzlon E....
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....impugned disallowance as well." 4. In effect thus while any delayed deposit of PF/ESI is to be disallowed, in terms of Hon'ble Gujarat High Court's judgment in the case of Gujarat State Road Transport Corporation (supra), the question as to whether there is a delay or not may be decided by the Assessing Officer in the light of above observations by the coordinate bench. The assessee will get relief, if found admissible, on that basis. 5. In the result, appeals of the assessee are allowed for statistical purposes. Pronounced in the open court today on the 27th June, 2018." In view of the above, the AR for the assessee before us submitted that the matter could be restored back to the file of AO for fresh adjudicat....
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....ed. The ld. AR in his rejoinder submitted that no reference should be made to the payment of wages Act while deciding the issue under the Income Tax Act. 6. We have heard the rival contentions and perused the materials available on record. In the instant case, the assessee has delayed in the payment of employee's contribution of PF/ ESI as specified under the relevant Act. Therefore, the disallowance was made by the AO u/s 36(1)(va) r.w.s. 2(24)(x) of the Act. The Ld CIT-A subsequently confirmed the view taken by the AO. The ld. AR before us has not challenged the proposition laid down by the Hon'ble Gujarat High Court in the case of CIT Vs. GSRTC (Supra), wherein it was held as under: "In view of the above and for the reason....