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2021 (10) TMI 514 - AT - Income TaxDisallowance u/s 36(1)(va) - delayed payment of ESI/EPF - deduction on account of employees contribution to PF on the ground that it is not paid within the due date - As argued most of the payments were made within the extended period of 5 days - whether CIT(A) has erred on facts and in law in not allowing the deduction on account of employees contribution to PF on the ground that it is not paid within the due date as provided u/s 36(1)(va) of the IT Act, even though it was paid before due date of the filing of return of income? - HELD THAT:- CIT(A) while deciding the issue in favour of the assessee has given a finding that though there was delay in deposit of ESI & EPF contribution but the same were deposited with the appropriate authorities before the due date of filing of return of income. We find that Hon’ble Delhi High Court in the case of CIT vs. AIMIL Limited [2009 (12) TMI 38 - DELHI HIGH COURT] held that if the employees‟ contribution is not deposited by the due date prescribed under the relevant Acts and is deposited late, the employer not only pays interest on delayed payment but can incur penalties also, for which specific provisions are made in the Provident Fund Act as well as the ESI Act. Therefore, the Act permits the employer to make the deposit with some delays, subject to the aforesaid consequences. Insofar as the Income Tax Act is concerned, the assessee can get the benefit if the actual payment is made before the return is filed - Decided in favour of assessee.
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