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2022 (7) TMI 671 - AT - Income TaxDelayed deposit of employee's contribution towards PF and ESIC - Scope of amendment - HELD THAT:- Admittedly the assessee has deposited the impugned contributions to the PF/ESI though after due date as prescribed under the relevant provisions of PF/ESI Act but within the time allowed u/s. 43B i.e. up to the due date u/s. 139(1) for filing of income. Regarding the amendments made through Finance Act, 2021, it is specifically mentioned by the legislature that the amendments are effective from 01.04.2021. As decided in M/S. EXPRESS ROADWAY P. LTD. case [2021 (10) TMI 514 - ITAT DELHI] as soon as employees contribution towards provident fund or ESI is received by the assessee by way of deduction or otherwise from the salary/wages of the employees, it will be treated as 'income' at the hands of the assessee. It clearly follows therefrom that if the assessee does not deposit this contribution with provident fund/ESI authorities, it will be taxed as income at the hands of the assessee. However, on making deposit with the concerned authorities, the assessee becomes entitled to deduction under the provisions of Section 36(1)(va) of the Act. Section 43B(b), however, stipulates that such deduction would be permissible only on actual payment. This is the scheme of the Act for making an assessee entitled to get deduction from income insofar as employees' contribution is concerned. It is in this backdrop we have to determine as to at what point of time this payment is to be actually made - Decided in favour of assessee.
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