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2019 (11) TMI 1186 - AT - Income TaxDeduction of P.F. and E.S.I. contribution of Employees - Delay in deposits - HELD THAT:- Assessee is in the business of wholesale and retail trading of gold covering jewellery. As observed that assessee had deducted PF & ESI share of employees contribution from salaries of employees to the tune of ₹33,32,061/- in aggregate during the year under consideration, which admittedly was deposited late by assessee beyond due date prescribed for deposit of PF/ESI under relevant statutes governing PF & ESI, but admittedly said amounts of employees contribution towards PF/ESI deducted by assessee from employees salaries were deposited by assessee before due date prescribed for filing of return of income u/s.139(1). We have observed in the case of CIT v. M/s.Industrial Security and Intelligence India Pvt. Ltd [2015 (7) TMI 1063 - MADRAS HIGH COURT] for ay: 2003-04 and 2004-05 has held that if employees contribution of PF and ESI deducted from employees salary is deposited before due date prescribed u/s.139(1) of 1961 Act, the deduction for same shall be allowed. As in the case of Carat Lane Trading Pvt. Ltd. [2017 (12) TMI 1669 - ITAT CHENNAI] we decide this issue in favour of the assessee and hold that employees contribution towards PF and ESI deducted by assessee from salaries of employees which is deposited by assessee beyond the due date prescribed under relevant statutes governing PF and ESI, but deposited prior to due date of filing of return of income u/s.139(1) of the 1961 Act shall be allowed as deduction and we direct deletion of the additions made to the income of the assessee. The assessee succeeds in its appeal filed with tribunal. - Decided in favour of assessee.
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