2025 (7) TMI 1795

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....143(1) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 21.11.2022 by the Assessing Officer, CPC, Bengaluru (hereinafter referred to as 'ld. AO'). Identical issues are involved in both these appeals and hence they are taken up together and disposed of by this common order for the sake of convenience. 2. The only effective issue involved in this appeal is as to whether the Learned NFAC was justified in confirming the addition made by the Learned AO on account of employees contribution to Provident Fund (PF) and Employee State Insurance (ESI) in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the materials available on record. It is not in dispute that the emplo....

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....mpugned judgment that the non-obstante clause would not in any manner dilute or override the employer's obligation to deposit the amounts retained by it or deducted by it from the employee's income, unless the condition that it is deposited on or before the due date, is correct and justified. The non-obstante clause has to be understood in the context of the entire provision of Section 43B which is to ensure timely payment before the returns are filed, of certain liabilities which are to be borne by the assessee in the form of tax, interest payment and other statutory liability. In the case of these liabilities, what constitutes the due date is defined by the statute. Nevertheless, the assessees are given some leeway in that as long as depo....

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....reason to interfere with the impugned judgment. The appeals are accordingly dismissed." 4. The ld. AR submitted that the deposit of employees' contribution should be reckoned from the month in which the salary has been actually disbursed rather than the month for which the salary relates. For instance, the salary for the month of April, 2020 has been paid in the month of May 2020 and therefore, due date for deposit of employees contribution to PF/ESIC should be reckoned from May 2020 and consequently the due date should be recorded as 15.06.2020. Once, this methodology is adopted then there would no delay in deposit of the employees' contribution towards ESIC as well as PF for most of the months. In our considered opinion, this matter re....