TaxTMI 
TaxTMI 
2018 (9) TMI 1873
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.... facts and circumstances of the appellant's case, the learned CIT(A) has grossly erred in upholding the addition related to employees' contribution to Provident fund for Rs. 39,91,179/- when no such disallowance is called for. The AO may be directed to delete the same. 2. In law and in the facts and circumstances of the appellant's case, the learned CIT(A) has grossly erred in not considering the written Submission wherein the appellant contented that for the purpose of employees contribution to PF / ESIC, the due date is to be reckoned with reference to the first date of actual payment of salary or wages and not with reference to close of the concerned month to which salary or wages pertains. 2.1 In law and in....
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....68 20/01/2012 19/03/2012 Jan, 2012 3,47,475 20/02/2012 19/03/2012 Feb, 2012 3,44,531 20/03/2012 23/04/2012 March, 2012 3,40,179 20/04/2012 23/04/2012 Total 39,91,179 The assessee was asked to show cause why late payment of PF collected from employees should not be disallowed and added to the income of the assessee company. The assessee explained that the payment of provident fund has been made before the completion of financial year and the same is required to be allowed. The assessing officer has not accepted the explanation of the assessee stating that in view of the specific provisions of section 36(1)(va) r.w.s. 2(24) (x) of the act the deduction for the employees co....
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....tion to the PF/ESIC as per the date prescribed in the relevant act therefore, said deduction is not available to the assessee even if there is a delay in disbursement of the salary. 5. We have heard both the sides and perused the material on record carefully. We observe that to achieve the socio-economic goals pertaining to the working class the Government has enacted beneficial enactment for the welfare and protection of the interest of the employees and the Employees Provident Fund and Miscellaneous Provisions Act, 1952 is one of them, which has been enacted with the main objection of protecting the interest of the employees. The purpose of an EPF is to help employees save a part of their salary every month to be used when the employee....
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....ce on the decision of the Hon'ble Jurisdictional High Court of Gujarat in the case of CIT vs. Gujarat State Road Transport Corporation reported in 265 CTR 64 (Guj) that where the employer has not credited the sum received by it as employees 'contribution to employees' account in relevant fund on or before due date as prescribed in Explanation to section 36(1)(va),the assessee shall not be entitled to deduction of such amount though he deposits the said sum before the due date prescribed u/s 43B,i.e. prior to filing of return u/s 139(1) of the act. However, we consider that the decision of the Hon'ble jurisdictional High Court in the case of CIT vs. GSRTC is more relevant to the case of the assessee. The Hon'ble jurisdictional High C....