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2022 (5) TMI 1566 - AT - Income TaxDelayed deposit of employee’s contribution towards provident fund and ESI fund - intimation issued by CPC as contribution received towards PF/ESIC by the assessee from its employees was not deposited before the due date - as submitted that since the amounts have been deposited before the filing of return of income, no disallowance is called for - HELD THAT:- The issue is no more res-integra. The issue has already been settled in favour of the assessee by various judicial pronouncements by the Tribunal. As in the case of PCIT vs Pro Interactive Service (India) Pvt. Ltd. [2018 (9) TMI 2009 - DELHI HIGH COURT] held amount paid is allowed as an expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee’s Provident Fund (EPD) and Employee’s State Insurance Scheme (ESI) as deemed income of the employer under section 2(23)(x). AO was not justified in denying the deduction claimed by the assessee on account of late deposit of PF/ESI/EPF, albeit before filing the return of income.
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