2023 (5) TMI 1359

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....olved in this appeal is with regard to disallowance u/s. 36(1)(va) in order dated 22.08.2019 u/s. 143(1) of the Income-tax Act, 1961 [the Act] and confirmed by the CIT(Appeals). 3. The assessee is a partnership firm engaged in the business of food preparation and sweets etc. It filed return of income for AY 2018-19 declaring total income of Rs.1,04,89,720. The return was processed u/s. 143(1) of the Act determining total income of Rs.1,22,14,931, disallowing Rs.17,25,211 towards delay in payment of employees contribution to PF and ESI u/s. 36(1)(va) of the Act. 4. On appeal before the CIT(Appeals), the assessee submitted that out of Rs.17,25,211, a sum of Rs.15,55,547 was paid within the due date as per the EPF & ESI Acts and the bala....

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.....12.2017 20.4.2018 Jan. 2018 1,334 15.02.2018 01.9.2018 Feb. 2018 3,839 15.03.2018 01.9.2018 Mar. 2018 5,207 15.04.2018 01.9.2018 Total 40,588       Deduction for the month Employee PF Contribution Due Date Date of Remittance Aug. 2017 58,406 15.09.2017 21.09.2017 Sept. 2017 70,700 15.10.2017 19.10.2017 Total 1,29,106     7. The assessee submitted that disallowance of the above amounts u/s. 36(1)(va) was a debatable issue and could not have been disallowed u/s. 143(1)(a) of the Act. The assessee placed reliance on various decisions of the High Courts and Tribunals. 8. However, the CIT(Appeals) dismissed the ap....

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....e and patent from the record, Thus to say that the scope of 'incorrect claim' should be circumscribed and restricted by the Explanation which employs the term 'entry' would, in my view, not be correct and the provision must be given full and unfettered play. The explanation cannot curtail or restrict the main thrust or scope of the provision and due weightage as well as meaning has to be attributed to the purposes of section 143(1)(a) of the Act." 12. In view of the above judgment, the contention of the assessee that no disallowance could be made u/s. 143(1)(a) of the Act towards employees contribution to EPF and ESI is rejected. 13. It is submitted by the ld. AR that there was inadvertent error in Form 3CD in mentioni....

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....e "month" should be considered to be the month which the wages relates or the month in which the actual disbursement of the wages is made, we are of the considered opinion that the expression "month" should mean here the month during which the wages/salary is actually disbursed irrespective of month to which the same relates. Thus, the scheme of the Government in this regard is that once a deduction is made in respect of the employees' contribution to the provident fund from the salary/wages of the employee or the employer also makes his contribution, factually at the time of disbursement of the salary the payment in respect of such contribution should be made forthwith. if for some reason or other the payment of salary for a particular mon....