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Income Tax Officer, Ward – 16 (2) , Hyderabad Versus Prime Access Technologies Ltd., Hyderabad

2015 (10) TMI 1458 - ITAT HYDERABAD

Delayed payment of employees’ contribution to PF & ESI - CIT(A) deleted the addition holding that they were paid before the due date of filing of the return of income - Held that:- As decided in case of VBC Industries Ltd Vs. DCIT [2015 (6) TMI 1 - ITAT HYDERABAD] keeping in view the proposition of law and following the decision of CIT Vs. Nipso Polyfabriks Ltd. (2012 (11) TMI 592 - HIMACHAL PRADESH HIGH COURT) we hold that employees contribution to PF & ESI remitted before the due date of filin .....

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in deleting the addition on account of employees contribution to PF & ESI holding that they were paid before the due date of filing of the return of income while there was no such provision in the Act . 3. Briefly, the facts are, assessee a company filed its return of income for the impugned AY on 30/09/2011 declaring total income of ₹ 51,45,337. During the assessment proceeding, AO on verifying the information on record, noticed that assessee has not made statutory payments relating t .....

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42,93,461. Being aggrieved of such disallowance, assessee preferred appeal before ld. CIT(A). 4. In course of appeal hearing before ld. CIT(A), it was submitted by assessee that since both employer s and employees contribution to PF & ESI were remitted to the respective accounts before the due date of filing of return u/s 139(1) of the Act, the same is allowable as deduction in view of the provision contained u/s 43B(b) of the Act. In support of such contention, assessee placed reliance upon .....

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er High Courts holding that even if the employer s/employees contributions were not paid into the Govt. account before the due dates as prescribed under those Acts, but paid before the due date for furnishing of the return of income u/s 139(1), they are eligible to be allowed as deduction from the income. So, respectfully following the caselaws cited by the appellant and since the appellant has paid the employees /employer s contributions towards PF & ESI before the due date for furnishing o .....

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3/Hyd/13 and others dated 08/05/15. On perusal of the aforesaid decision of the coordinate bench, it is seen that while considering identical issue relating to disallowance made on account of delayed payment of employees contribution to PF & ESI, Tribunal after considering the principle laid down by different high courts on the issue allowed assessee s claim by holding as under: 16. We have heard the parties and perused the orders of revenue authorities as well as the materials on record. We .....

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9(1) of the Act. Thus, the only issue to be decided whether such delayed payment of employee s contribution to PF & ESI is an allowable deduction u/s 43B. As can be seen, the Hon ble Gujarat High Court in case of CIT Vs. Gujarat State Road Transport Corporation (supra) has decided the issue against assessee by holding that employee s contribution to PF & ESI is not covered under the provisions of section 43B. However, it is worth mentioning, in the very same decision, Hon ble Gujarat Hig .....

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