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2019 (7) TMI 971 - GUJARAT HIGH COURTDisallowance u/s 36(1)(va) read with Section 2(24)(x) - disallowance of late deposited employees’ contributions of PF and ESIC - HELD THAT:- Both the questions proposed by the assessee are no longer res integra. So far as the question no.(i) proposed by the assessee is concerned, the same is squarely covered by a Division Bench decision of this Court in the case of Commissioner of Income Tax vs. Gujarat State Road Transport Corporation [2014 (1) TMI 502 - GUJARAT HIGH COURT] So far as the second question which has been proposed is concerned, is also squarely covered by the decision of this Court in the case of M/s Checkmate Facility And Electronic Solutions Pvt. Ltd. vs. Deputy Commissioner of Income Tax [2018 (10) TMI 994 - GUJARAT HIGH COURT] wherein this Court held Provision thus requires an employer before paying the employee his wages to deduct the employee's contribution along with the employer's own contribution as fixed by the Government. It is further required that he shall within fifteen days of the close of every month pay the same to the fund such contribution and administrative charges. In terms of this provision thus, after deducting the employee's contribution towards the funds, the same has to be deposited with the Government within fifteen days of the close of every month. Reference to fifteen days of the close of the month must be in relation to the month during which the payment of wages is to be made and corresponding liability to deduct employee's contribution to the fund arises. The expression “within fifteen days of the close of every month” therefore must be interpreted as having reference to the close of the month, for which, the wages are required to be paid with corresponding duty to deduct employee's contribution and to deposit the same in the fund. Appellant is therefore not correct in contending that if such wages are paid in the following month, the liability to deposit the employee's contribution to the fund gets differed by another month. - Decided against assessee
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