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2017 (12) TMI 191 - ITAT HYDERABADDisallowance of employee’s contribution to ESI after the due date prescribed in the statute u/s 36(1)(va) - Held that:- The assessee has remitted the employee’s contribution to the Govt. A/c within the prescribed due dates, except for one day delay, with respect to a sum of ₹ 1,24,657. Clause (va) of section 36(1), clearly lays down that the deduction of employees contribution received by the assessee shall be allowed only, if such sum is credited by the assessee to the employee’s a/c in the relevant fund or funds on or before the due date, and for the purpose of this clause, “due date” means, the date by the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund. Therefore, in the strict sense, the sum which has not been credited to the employee’s a/c in the relevant fund is to be disallowed. However, we find that the assessee has all along been remitting the amount before the due date except for the delay of one day with regard to the sum of ₹ 1,24,657. As the delay is not inordinate, we are inclined to delete the disallowance and the consequent addition made to the returned income of the assessee. Benefit of credit of tax so paid - Held that:- DRP has directed the AO to verify the claim of the assessee with reference to the dividend distribution tax of ₹ 2,08,89,625 paid by the assessee as disclosed in the ROI and to refund the tax of ₹ 4,85,806 claimed by the assessee in accordance with law, but the AO, while giving effect to the order of the DRP, has failed to give the said credit. We, therefore, direct the AO to verify the claim of the assessee and allow the benefit of credit of tax so paid and process the refund accordingly.
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