TaxTMI 
TaxTMI 
2022 (5) TMI 1382
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....ual medium on account of Government guidelines on account of prevalent situation of Covid-19 Pandemic, both the parties have placed their written as well as oral arguments during this online hearing process. 3. The assessee has taken following grounds in this appeal; "1. On the facts and circumstances of the case, the CIT(A) has erred in sustaining the order the order of the AO. wherein the AO has erred in making disallowances of Rs. 18,12,622/- out of employment contribution towards EPF/ESIC. The disallowance made by the AO and Confirmed by the CIT-A is unjustified, unwarranted and Uncalled for. 2. The assessee reserves the right to add, amend or alter any grounds of appeal at any time of hearing." 4. Briefly stated....
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....€¢ Commissioner of Income Tax vs. Jaipur Vidyut Vitran Nigam Ltd. (2014) 88 CCH 0010 RajHC • Commissioner of Income Tax vs. Aimil Ltd. & Ors.*(2009) 77 CCH 1185 DelHC • Premier Car Sales Ltd. vs. Assistant Commissioner of Income Tax (2022) 65 CCH 0054 Lucknow Trib • Sandhu Automobiles Pvt. Ltd. vs. Deputy Commissioner of Income Tax (2022) 65 CCH 0063 Chd Trib • Taj Granites Pvt. Ltd. & Anr. vs. Deputy Commissioner of Income Tax & Anr. (2022) 65 CCH 0052 Jaipur Trib • Deputy Commissioner of Income Tax and Anr. vs. Godawari Power & Ispat Ltd. and Anr. (2018) 54 CCH 0360 Raipur Trib • Deputy Commissioner of Income Tax vs. Hira Ferro Alloys Ltd. (2018) 52 CCH 0665....
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....d or superannuation fund or any fund set up under the provisions of ESI Act or any other fund for the welfare of such employees. Section 36 of the Act pertains to the other deductions. Sub-section (1) of the said section provides for various deductions allowed while computing the income under the head =Profits and gains of business or profession'.Clause (va) of the said subsection provides for deduction of 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 to the said clause provides that, for the purposes of this clause....
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.... it needs to be stressed that the employer's contribution towards welfare funds such as ESI and PF needs to be clearly distinguished from the employee's contribution towards welfare funds. Employee's contribution is employee own money and the employer deposits this contribution on behalf of the employee in fiduciary capacity. By late deposit of employee contribution, the employers get unjustly enriched by keeping the money belonging to the employees. Clause (va) of sub-section (1) of Section 36 of the Act was inserted to the Act vide Finance Act 1987 as a measures of penalizing employers who mis-utilize employee's contributions. Accordingly, in order to provide certainty, it is proposed to - (i) amend clause (va) of sub-section (1) of secti....
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....ntial benefits had been obtained by them in the shape of the amount having been claimed as a deduction but the said amounts were not deposited. It is pertinent to note that the respective Act such as PF / ESIC etc. also provides that the amounts can be paid later on subject to payment of interest and other consequences and to get benefit under the Income Tax Act, an assessee ought to have actually deposited the entire amount as also to adduce evidence regarding such deposit on or before the return of income under sub-section (1) of Section 139 of the IT Act. Thus, we are of the view that where the PF and/or EPF, CPF, GPF etc., if paid after the due date under respective Act but before filing of the return of income under Section 139(1), can....