TaxTMI 
TaxTMI 
2023 (4) TMI 1224
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....ounds raised by the assessee are reproduced as under: 1. On facts and in law, the Learned Commissioner of Income Tax (hereinafter referred to as Ld. CIT-A) had erred in confirming the addition of Rs. 13,41,333/- made w/s. 143(1) by CPC Bangalore.Under the facts and circumstances, he ought to have deleted the addition made by CPC Bangalore. 2. On facts and in law, the Ld. CIT-A had failed to appreciate that the sum of Rs. 13,41,333/- was paid within due dates; hence the same is allowable u/s. 36(1)(va) r.w.s. 2(24)(x). 3. On facts and in law, the Ld. CIT-A had erred in not directing CPC to allow credit of Rs. 13,328/- being the TDS on income which have been offered to tax. Under the facts and circumstances of the matter he should hav....
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....re us, the Ld. Counsel of the assessee submitted that assessee was engaged in providing manpower securities services etc. He submitted that salary/ remuneration payment to staff for the month was paid in subsequent month, preferably before 7thday of next month. For example, payment for month of April 2019 was paid on or before 7th of May 2019. The Ld. Counsel referred to the provisions of section 36(1)(va) of the Act and submitted that employee's contribution was deposited as per the due date prescribed under the relevant Act. The Ld. Counsel further referred to the employee provident fund scheme 1952 formulated under the provisions of the relevant Act. The relevant clause no. 38 of the scheme is reproduced as under: "38. Mode of payment ....
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....es made from the wages of all the members and the aggregate amount contributed by the employer in respect of all such members for the month : Provided that an employer shall send a Nil return, if no such recoveries have been made from the employees: Provided further that in the case of any such employee who has become a member of the Pension Fund under the Employees' Pension Scheme, 1995, the aforesaid Form shall also contain such particulars as are necessary to comply with the requirements of that Scheme. (3) The employer shall send to the Commissioner within one month of the close of the period of currency, a consolidated Annual Contribution Statement in Form 6-A, showing the total amount of recoveries made during the period ....
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....nt fund or ESI authorities. 5. We have heard rival submission of the parties on the issue-indispute and perused the relevant material on record. The issue-indispute is in respect of employee'scontribution to provident fund (PF) and employee state insurance corporation (ESIC) fund amounting to Rs.84,43,087/- and Rs.8,58,774/- respectively. The provisions of the Act provide for payment of the employee's contribution of PF/ESI on or before the due date prescribed under the relevant PF/ESI and the issue-in-dispute is in respect of due date prescribed. According to the assessee, the due has to be reckoned within 15 days from the close of the month in which payment is made to the employee, whereas according to Revenue the contr....
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....as "employees" contribution in respect of wages for such period within a period of 15 days from the close of the month to which the wages relates. On the other hand, in our view, most appropriate interpretation would be that the employer would be at liberty to make payment of the contribution concerned within 15 days (subject however to the further grace period) from the end of the month during which the disbursement of the salary is actually made and the contribution of the, provident fund are, thus, generated, inasmuch as, the provision relating to the disallowance of such contribution on account of delay is rather an artificial provision. In our view, a liberal approach has got to be made to this issue. Ultimately, therefore, we reverse ....