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2021 (11) TMI 1068 - AT - Income TaxLate payment of Provident Fund u/s 36(1) (va) r.w.s.2(24) - delay in depositing the employees’ contribution to Provident Fund by the employer assessee when seen with reference to due date of accrual of salary - HELD THAT:- We observe that the decision of the Hon’ble Gujarat High Court Gujarat State Road Transport Corporation [2014 (1) TMI 502 - GUJARAT HIGH COURT] does not apply where the payment has been made on or before the due date. The deduction under s.36(1)(va) in such case is available without any fetters. It may be pertinent to observe that disallowance under s.43B r.w.s. 36(1)(va) of the Act in respect of non-payment of provident fund etc. within the due date is not intended to cover genuine and routine cases on late payment but only those where the employer has mis-utilized the funds collected from the assessee. The addition/disallowance under s.43B of the Act for such delay of bare one or two days in depositing the employees’ provident fund would thus be wholly disproportionate to the default committed, if any. Thus, seen from any angle, the addition/disallowance under s. 36(1)(va) r.w.s. 2(24)(x) of the Act is not justified in the instant case. Assessee appeal allowed.
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