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2021 (2) TMI 277 - AT - Income TaxDisallowance u/s 36(1)(va) - delay in remitting employee's contribution to Provident Fund and ESI - As per assessee sum was remitted before the due date of filing of the return of income U/s. 139(1) and therefore, the same should not have been disallowed U/s. 36(1)(va) - Diversified decisions on the issue - HELD THAT:- The Hon'ble Supreme Court in the case of CIT vs. M/s. Vegetable Products Ltd. [1973 (1) TMI 1 - SUPREME COURT] has held that if there are two views possible on the same issue, the one which is in favour of the assessee should be adopted. Thus decision of the Hon'ble Supreme Court in the case of CIT vs. Alom Extrusions Ltd. [2009 (11) TMI 27 - SUPREME COURT] is applicable to both the employer as well as employee's contribution to Provident Fund and ESI and if the assessee has not remitted the amount collected from the employees before the due date of filing of return of income U/s. 139(1) of the Act, then the same has to be disallowed and brought to tax. With these directions, the appeal of the assessee is allowed and the A.O. is further directed to reconsider the issue, if the contrary view is upheld by the Apex Court in the appeals before the Hon'ble Supreme Court on this issue. Assessee appeal is allowed for statistical purposes.
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