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2022 (8) TMI 560 - AT - Income TaxDisallowance of different amount u/s. 2(24) (x) r.w.s 36 (1) (va) towards employees contribution to PF/ ESIC - assessee’s captioned above have deposited the employees contribution to PF/ ESIC well before the prescribed date for filing the return of income u/s.139(1) although there may be some delinquency in abiding by the due date prescribed under the prescribed Act - HELD THAT:- The issue is no more res-integra. The issue has already been settled in favour of the assessee by various judicial pronouncements by the Tribunal. The Hon’ble Jurisdictional High Court of Delhi in the case of PCIT vs Pro Interactive Service (India) Pvt.Ltd. [2018 (9) TMI 2009 - DELHI HIGH COURT] held that legislative intent was/is to ensure that the amount paid is allowed as an expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee’s Provident Fund (EPD) and Employee’s State Insurance Scheme (ESI) as deemed income of the employer under section 2(23)(x). Revenue has not placed any material on record to demonstrate that the aforesaid order cited hereinabove has been overruled/stayed/set aside by higher judicial forum. In view of the aforesaid facts, we are of the view that the AO was not justified in denying the deduction claimed by the assessee on account of late deposit of PF/ESI/EPF, albeit before filing the return of income. Admittedly, in all the above-stated matters, the Revenue had not contended that the assessee has deposited the contribution after the filing of the return of income. - Decided in favour of assessee.
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