2025 (6) TMI 2069

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....u/s 143(1) r.w.s 154 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 05.02.2020 by the Assessing Officer, ADIT, CPC, Bengaluru (hereinafter referred to as 'ld. AO'). 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. The assessee has also raised an additional ground on 8.5.25 which is also supportive of the original grounds raised by the assessee. Hence the additional ground raised by the assessee is admitted and taken up for adjudication along with the original grounds. ....

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....reting the obligation of every assessee under Section 43B. 54. In the opinion of this Court, the reasoning in the impugned 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 c....

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....r High Courts, holding to the contrary, do not lay down the correct law. For these reasons, this court does not find any 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, 2017 has been paid in the month of May 2017 and therefore, due date for deposit of employees contribution to PF/ESIC should be reckoned from May 2017 and consequently the due date should be recorded as 15.06.2017. Once, this methodology is adopted then there is no delay in deposit of th....