2021 (11) TMI 773

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n to PF and ESI. 3. Facts of the case, in brief, are that the assessee is a private limited company and filed its return of income on 30th July, 2018 declaring nil income. The return was processed on 15th May, 2019 at CPC, Bangalore at an income of Rs. 2,62,980/- by making an addition of Rs. 2,62,984/- on account of late deposit of PF/ESI u/s. 36(1)(va) of the IT Act. Before the CIT(A), the assessee, relying on various decisions, submitted that the addition is not justified since the assessee has deposited the employees' contribution to PF and ESI before the due date of filing the return of income. However, the ld. CIT(A), following the decision of the Hon'ble Delhi High Court in the case of CIT vs. Bharat Hotels Ltd., reported i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ibunal, following the above decision of the Hon'ble Delhi High Court in the case of Pro Interactive Service (India) Pvt. Ltd. (supra) has decided the issue in favour of assessee where the employees' contribution to PF and ESI were deposited after the due date prescribed under the Employees Provident Fund and Employees' State Insurance Act, 1948 but before the due date of filing of return. Relying on various other decisions as per his case law compilation, he submitted that under identical circumstances, the courts/coordinate Benches of the Tribunal have held that no disallowance u/s. 36(1)(va) r.w.s. 2(24)(x) can be made if the employees' contribution to PF and ESI have been deposited prior to the due date of filing of the r....