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2020 (2) TMI 792 - HC - Income TaxLate payment of employee's contribution towards PF, ESIC - additions by invoking provisions of Section 36(1)(va) read with Section 2(24)(x) - HELD THAT:- Section 38 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 makes it obligatory for the employer before paying him his wages to deduct the employee's contribution along with the employer's own contribution as fixed by Government. The employer is further obliged to pay the same within fifteen days of the close of every month pay i.e. such contribution and administrative charges. The reference to fifteen days of the close of the month must be in relation to month during which the payment of wages is to be made and corresponding liability to deduct employee's contribution to the fund arises. This Court held that the expression “within fifteen days of the close of every month” therefore, must be interpreted as having reference to the close of the month, for which, the wages are required to be paid with corresponding duty to deduct employee's contribution and to deposit the same in the fund. Finding recorded by the Tribunal that if such wages are paid for the following month, the liability to deposit the employee's contribution to the fund gets deferred by another month is not the correct statement of law. -Decided in favour of the Revenue and against the assessee.
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