2022 (2) TMI 1087

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....n 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 15/05/2016 18/05/2016 2 EPF 627258 Feb'17 15/03/2017 16/03/2017 Total &n....

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....rd 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 towards provident fund and ESI contribution is deemed to be income of the assessee, if the employer had not paid the same to the account of the employee within due date specified under the provi....

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....yer 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 coordinate bench of ITAT Hyderabad in the case of Tetra Soft (India) Pvt. Ltd. Vs. ACIT: (2015) 40 ITR (Trib) 470 and also taking support from the decision of Hon'ble Supreme Court in the case of ....