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2019 (6) TMI 1116 - AT - Income TaxAllowability of deduction u/s 36(1)(va) on the employees contribution towards EPF - HELD THAT:- This issue is squarely covered against the assessee by the judgment of the Jurisdictional High Court in the case of Popular Vehicles and Services Pvt. Ltd. vs. CIT [2018 (8) TMI 133 - KERALA HIGH COURT] since the employees' contribution was collected from the employees as a deduction in their salary itself it would in effect be income of the assesses, as had been indicated in the definition of "income" under section 2(24)(x). The employees' contribution towards the funds was regulated by sub-clause (x) of section 2(24) and clause (va) of section 36(1) and would not be affected by section 43B. The non obstante clause of section 43B had no effect in so far as the employees' contribution which was specifically covered by clause (va) of section 36(1). By virtue of the Explanation below clause (va), no deduction could be claimed if the contribution had not been paid after collection from the employees by way of deduction from their salaries, within the due date under the labour welfare Acts. The deletion of a proviso under section 43B could not render otiose the Explanation under section 36(1)(va) - Decided against assessee.
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