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2017 (12) TMI 936 - AT - Income TaxDisallowing the payment of Employees’ contribution to PF and ESIC with delay - paid on or before due date for filing of the Income tax returns u/s 139(1)- Held that:- As regards the allowability of deduction u/s 43B of the Act of Employer’s contribution to PF and ESIC, the Hon'ble Supreme Court in the case of CIT vs.Vinay Cement Ltd 2007 (3) TMI 346 - Supreme Court of India) has held that if it is paid on or before the due date of the filing of the return u/s 139(1) of the Act, it is allowable. As regards the applicability of such proviso to the disallowance made u/s 36(1)(va) of the Act, we find that decisions are both against and in favour of the assessee. We find that the Coordinate Bench of this Tribunal at Visakhapatnam in the case of DCIT vs. Eastern Power Distribution Company of A.P. Ltd (2016 (9) TMI 1040 - ITAT VISAKHAPATNAM ) has considered all the above decisions referred to by the assessee as well as the DR and has held that there is no distinction between the employees’ and employer’s contribution of PF and if the total contribution is deposited on or before the due date of furnishing the return u/s 139(1) of the Act, then no disallowance can be made of employees contribution to PF.Respectfully following the decision of the Coordinate Bench on similar set of facts, this appeal of the assessee is allowed.
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