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2022 (1) TMI 138 - AT - Income TaxDelayed employees contribution to PF & ESIC u/s 36(1)(va) - HELD THAT:- We note that as per the provisions of section 36(1)(va) of the Act “any sum received by the assessee from any his employee’s towards contribution to any PF or superannuation fund or any fund set up under the provisions of Employee Estate Insurance Act, 1948 or any other fund for the welfare of such employees is allowed as an expenditure if such sum is credited by the employer to the employees account in the relevant fund or funds on or before the due date”. And for the purpose of this section 36(1)(va) explanation (1) to this section provides that “ ‘due date’ means the date by which the assessee is required as an employer to credit an employee’s contribution to the employee’s account in the relevant fund under any Act, rule, order or notification issued there under or under any standing order, award, contract or service or otherwise. We further find that the alleged disallowance was made as there was a delay in deposit beyond the due date provided under relevant Act which deals with PF/ESIC. But undisputedly the amount has been deposited with the relevant fund before the due date of filing the return of income u/s 139(1). DR has submitted that for the instant issue is debatable and there are various judgments against the assessee also. We, however, find that Hon'ble Supreme Court in the case of CIT vs. Vegetable Products Ltd. [1973 (1) TMI 1 - SUPREME COURT] has held that “if two reasonable constructions of a taxing provision are possible that construction which favours the assessee must be adopted”. We, therefore, under the given facts and circumstances of the case and taking a consistent view in light of judicial precedence or discussed above as well as the decision taken by this Tribunal in the case of M/s Industrial Filters and Fabrics Pvt. Ltd. [2018 (9) TMI 1008 - ITAT INDORE] & M/s Parag Fans & Cooling System Pvt. Ltd. [2021 (2) TMI 425 - ITAT INDORE] delete the disallowance and allow grounds raised by the assessee.
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