2018 (10) TMI 994

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....ayment of employee's contribution to PF and ESI in spite of the fact that it was deposited before due date of filling return of income? 2. Whether on facts and in law, the Income Tax Appellate Tribunal is right in confirming disallowance of Rs. 1,16,87,091/u/ s 2(24)(x) r.w.s. 36(1)(va) for delay in payment of employee's contribution to PF and ESI, when the delayed payment is considered on the basis of date on which salary pertains to and not the day on which salary is paid ignoring provisions of clause 38 of the Employees' provident fund scheme, 1952." 2. The issue arises in following background. The assessee is a private limited company. For the assessment year 2013-14, the assessee had filed the return of income declarin....

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....different contention which did not arise for consideration before this Court in case of Gujarat State Road Transport Corporation (supra). He submitted that in terms of section 38 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, reference to the time limit for depositing the contributions within 15 days of close of the month must be to the month in which the salary payment is made. For example, therefore if the salary payment for the month of June is made on 5th July, the employer would have time upto 15th of August for depositing the employee's contribution of provident fund. Looking from this angle, there was no delay or default on the part of the present assessee. 4. In terms of section 36(1)(va) of the Act, a....

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....n account of contributions and administrative charge]: "Provided that the Central Provident Fund Commissioner may for reasons to be recorded in writing, allow any employer or class of employer to deposit the contributions by any other mode other than internet banking". 5. This provision thus requires an employer before paying the employee his wages to deduct the employee's contribution along with the employer's own contribution as fixed by the Government. It is further required that he shall within fifteen days of the close of every month pay the same to the fund such contribution and administrative charges. In terms of this provision thus, after deducting the employee's contribution towards the funds, the same has to be de....