TaxTMI 
TaxTMI 
2019 (6) TMI 813
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.... Tax Appeal No.1329 of 2018 is treated as the lead matter. 3 This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act, 1961") is at the instance of the Revenue and is directed against the order dated 27th June 2018 passed by the Income Tax Appellate Tribunal, Ahmedabad, "A" Branch, Ahmedabad in the ITA Nos.764 & 765/Ahd/2018 for the assessment year 2013-14 and 2014-15. 4 The proposed substantial question of law raised in the memorandum of this appeal is as under: "Whether the Appellate Tribunal has erred in law and on facts while allowing the appeal of the assessee for statistical purpose by holding that the due date for payment of employee's contribution in respect of P.F. ESIC shall not be determined ....
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....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 declaring total income of Rs. 65,65,980/. The return was taken in scrutiny by the Assessing Officer. In the order of assessment passed by him under section 143(3) of the Income Tax Act, 1961 ('the Act' for short) a disallowance of employees' contributions towards provident fund and ESI amounting to Rs. 1,16,87,091/was made. This was on account of the fact that the assessee though had deducted such contributio....
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....e, 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, any sum received by the assessee from any of his employees to which the provisions of section 2(24)(x) applies, would be deducted as long as such sum is credited by the assessee to the employee's account in the relevant funds on or before due date. Explanation to the said subsection provides that for the purpose of the said clause, "due date" means a date by which the assessee is required as an employer to credit an e....
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....bution 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 deposited with the Government within fifteen days of the close of every month. Reference to fifteen days of the close of the month must be in relation to the month during which the payment of wages is to be made and corresponding liability to deduct employee's contribution to the fund arises. The expression "within fifteen days of the close of every month" therefore must be interpreted as having reference to the close of the month, for whic....