Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 857 - AT - Income TaxDenial of business deduction u/s 36(1)(va) - late payment of employees’ contribution to Provident Fund (PF) and Employees' State Insurance Corporation (ESIC)- Held that:- The assessee has tried to demonstrate that employees’ contribution to PF/ESIC has been made before the ‘due date’ as prescribed under the respective Act having regard to the month of disbursement of salary/wages and also the grace period available under the relevant Acts. It is thus broadly the case of the assessee that the relevant ‘due date’ for making payment of contribution has to be seen not with reference to the relevant months relatable to wages/salary but the month of its actual disbursement. Coupled with this, grace period available under the respective Act is also required to be taken into account. The co-ordinate bench of Tribunal in Kanoi Paper & Industries Ltd. vs. ACIT [2001 (5) TMI 139 - ITAT CALCUTTA-E] has observed that the relevant due date in such a case is to be seen with reference to the month of the actual disbursement of wages/salaries. We also are of the view that grace period available under the respective Acts should be taken into account while computing the delay, if any. We consider it expedient to restore the issue back to the file of the AO for factual verification and re-determination of the issue - Decided in favour of assessee for statistical purposes.
|