TaxTMI 
TaxTMI 
2019 (10) TMI 704
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.... Delhi qua the assessment year 2013-14 on the grounds inter alia that :- "1. The learned assessing officer as well as CIT(A) has erred in making confirming the addition amounting to Rs. 4,29,110/- u/s 36(i)(va) being employees' contribution to PF & ESI on the basis that the amounts have not been deposited within the due dates as specified in the respective Acts. The various courts have confirmed the position of the law that the assessee can get the benefit of deduction for the payments specified u/s 36(1)(va) i.e. employee's contribution towards PF & ESIC, even if it were paid after the end of the previous year but before the due date for furnishing of return under section 139( I) of the Act. PRAYER: ....
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....PROVIDENT FUND Month Employees Contribution to PF Due date of deposit Date of deposit April, 2012 42372/- 20.05.2012 19.07.2012 May, 2012 44627/- 20.06.2012 19.07.2012 June, 2012 44909/- 20.07.2012 27.08.2012 July, 2012 45912/- 20.08.2012 01.09.2012 August, 2012 46981/- 20.09.2012 24.09.2012 November, 2012 43431/- 20.12.2012 11.01.2013 January, 2013 41132/- 20.02.2013 27.02.2013 February, 2013 39630/- 20.03.2013 26.03.2013 March, 2013 39360/- 20.04.2013 10.05.2013 TOTAL RS. 388356/- EMPLOYEES STATE INSURANCE Month Employees Contribution to PF Due date of deposit Date of deposi....
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....h the relevant provisions contained u/s 36(1)(va) of the Act which are extracted for ready perusal as under :- "36. (1) The deductions provided for in the following clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28- ........ (va) any sum received by the assessee from any of his employees to which the provisions of sub-clause (x) of clause (24) of section 2 apply, if such sum is credited by the assessee to the employee's account in the relevant fund or funds on or before the due date. Explanation.-For the purposes of this clause, "due date" means the date by which the assessee is required as an employer to credit an employee's contributi....
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....ection 43B(b) of the Act and not qua employees contribution u/s 36(1)(va) of the Act. 11. Hon'ble jurisdictional High Court in case of CIT vs. Bharat Hotels Ltd. (2019) 410 ITR 417 (Delhi) (supra) decided the identical issue qua delayed deposit of employees contribution on account of PF & ESI against the assessee by holding that assessee would be entitled to deduction in terms of section 36(1)(va) of the Act to the extent if the employees contribution on account of PF & ESI is deposited on or before the due date, and the employees contribution on account of PF & ESI deposited beyond the stipulated period would not make the assessee company entitled to claim deduction from its return. For ready perusal, operative part of the judgment of C....
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....posit with the concerned statutory authority had to be made within three weeks of the succeeding wage month/period. The CIT in this case confirmed the additions - made by the AO based on the entire amounts that were disallowed. The ITAT however granted complete relief. 8. Having regard to the specific provisions of the Employees' Provident Funds Act and ESI Act as well as the concerned notifications which granted a grace period of 5 days (which appears to have been late withdrawn recently on 08.01.2016), we are of the opinion that the ITAT's decision in this case was not correct. The assessee undoubtedly was entitled to claim the benefit and properly treat such amounts as having been duly deposited, which were in fact depos....