Employees’ contribution to EPF and ESIC deposited beyond the due date prescribed under section 36(1)(va) would not be eligible for deduction even if deposited before the due date of filing the return of income tax under section 139(1): Madras High Court

  • Employees‘ contribution to EPF and ESIC deposited beyond the due date prescribed under section 36(1)(va) would not be eligible for deduction even if deposited before the due date of filing the return of income tax under section 139(1): Madras High Court

short overview: Employees’ contribution to EPF and ESIC deposited beyond the due date prescribed under section 36(1)(va) would not be eligible for deduction even if deposited before the due date of filing the return of income tax under section 139(1). Therefore appeal of Revenue was allowed.

Issue arose under consideration as to whether Tribunal was correct in law in holding that no disallowance could be made on account of assessee paying employees’ contribution to PF and ESI funds beyond the due dates prescribed under the respective Acts and as per section 36(va) read with section 2(24)(x).

it is hald: High Court in the case of Gujarat State Road Transport Corporation Ltd. [(2014) 366 ITR 170 (Guj) : 2014 TaxPub(DT) 1235 (Guj-HC)] and M/s. Checkmate Facility & Electronics Solutions (P) Ltd. v. DCIT [R/Tax Appeal No. 1256 of 2018, dt. 15-10-20418] held that employees’ contribution to EPF and ESIC deposited beyond the due date prescribed under section 36(1)(va) would not be eligible for deduction even if deposited before the due date of filing the return of income tax under section 139(1). Therefore appeal of Revenue was allowed.

Decision: Against the assessee.

Referred: CIT II v. Gujarat State Road Transport Corporation (2014) 366 ITR 170 (Guj) : 2014 TaxPub(DT) 1235 (Guj-HC), CIT v. Aimil Limited, Nirmala Swami, Spearhead Digital Studio, M/s. Net 4 India Ltd., Modipon Ltd., & M/s. Ekta Agro Industries Ltd., (2010) 321 ITR 508 (Delhi) : 2010 TaxPub(DT) 1231 (Del-HC), CIT v. Madaras Radiators & Pressings Ltd. (2003) 264 ITR 620 (Mad) : 2003 TaxPub(DT) 885 (Mad-HC).

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