2022 (2) TMI 1087

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....facts of the case are that assessee engaged in the business of manufacturing drugs and pharmaceuticals, filed its return of income for the A.Y. 2017-18 on 29/11/2017 admitting total income of Rs. 20,26,07,770/-. The return was selected for scrutiny under CASS and statutory notices 143(2) & 142(1) were issued to the assessee. The assessee submitted various records to the AO as per the questionnaire issued to it. The AO after considering the submissions relied on Form 3CD at serial No. 20b regarding the contribution received from employees as detailed below:- PF Contribution S.No. Type of contribution Sum received from employee Month Due date for payment Date of remittance 1 EPF 731658 Apr'16 15/05/20....

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....d. DR has accepted that the payments are made on or before the due date of filing of return u/sec. 139(1) of the Act. 6. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The A.O. made additions towards belated payment of employees' contributions to PF and ESI under the respective Acts. According to the A.O., employees' contribution to provident fund and ESI, is deductible under the provisions of section 36(1)(va) of the Act, if the same is paid on or before the due date specified under the respective Act. The A.O. further was of the opinion that in view of the clear provisions of section 2(24)(x) r.w.s. 36(1)(va) of the Act, any recovery from employees....

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....ents of the assessee for the reason that there is no difference between employees and employer contribution under the respective Act. If the legislature intends to differentiate employees and employer contribution, then there would have been two due dates like in the case of Income Tax Act. 8. On merits also, this Tribunal has consistently viewed that the employees contribution to PF and ESI is allowable deduction if the same is paid before the due date of filing the return of income. In the case of APEPDCL in I.T.A. No. 609/V/2014 dated 29.07.2016, the coordinate bench of ITAT, Visakhapatnam after considering the decision of Hon'ble Karnataka High Court in the case of Essae Teraoka (P) Ltd. Vs. DCIT 366 ITR 408 and the decision of c....