2014 (3) TMI 386 - KARNATAKA HIGH COURT

Disallowance under Section 36(1)(va) r.w.s 43B – Contribution made to PF - Whether the Tribunal was justified in denying the appellant’s claim of deductions of the employees contribution to PF/ESI – Held that:- By itself it is not sufficient to hold that the employer is not entitled for deduction as contemplated under Section 36(1)(va) of the IT Act r/w Section 43-B of the IT Act - The word “contribution” is used not only to mean contribution of the employer but also contribution to be made on behalf of the member employed by the employer directly - the word “contribution” used in Clause(b) of Section 43-B of the IT Act means the contribution of the employer and the employee - That being so, if the contribution is made on or before the due date for furnishing the return of income under sub-section(1) of Section 139 of the IT Act is made, the employer is entitled for deduction – thus, the assessee is entitled for deduction – Decided in favour of Assessee.