TMI Blog2019 (3) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... E COURT) wherein it was held that if the assessee paid the amount in respect of PF and ESI before the due date of filing return of income there should not be any disallowance. We note that the assessee’s case under consideration, the PF and ESI were paid within the due date of filing return of income u/s 139(1) of the Act and therefore there should not be any disallowance and hence we direct the AO to delete the addition on account of PF and on account of ESI. - Decided in favour of assessee. - ITA No.1584/Kol/2017 - - - Dated:- 10-10-2018 - Shri A.T. Varkey, JM And Dr. A.L. Saini, AM For the Appellant : Shri A.K.Tibrewal, FCA Shri Amit Agarwal, Advocate For the Respondent : Shri N.Murmu, JCIT ORDER PER DR. ARJUN L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, the AO made addition u/s 43B of the Act to the tune of ₹ 2,50,702/- ( ₹ 2,25,177 + ₹ 25,525). 4. Aggrieved by the stand taken so taken by the ld AO, the assessee carried the matter in appeal before the ld. CIT(A), who dismissed the appeal of the assessee. The ld. CIT(A) noted that there was a delay in filing the appeal before him and the delay had not been explained by the assessee properly. Therefore, the ld. CIT(A) did not condone the delay in filing the appeal and without discussing the appeal on merit dismissed the appeal of the assessee. 5. Aggrieved by the order of the ld. CIT(A) the assessee is in appeal before us. 6. The ld. Counsel for the assessee has submitted before us that the assessee has depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is mentioned in para 6 and 7 of this order, we note that all the payments had been made within the financial year itself and well before the due date of filing the return of income under section 139 (1) of the Act. The assessee has submitted challans for evidencing his payment towards PF and ESI before the due date of filing the return of income under section 139 (1) of the Act. We note that as per CBDT Circular NO.22/2015, dated 17.12.2015, issued by CBDT with reference to allowability of contributions to PF for the welfare of the employees in terms of section 43B of the Act. It is clearly mentioned in the said circular that no disallowance could be made u/s 43B of the Act, if the amount has actually been paid by the assessee before fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be made under section 43B of the Act. 9. We note that this jurisdictional Hon ble Calcutta High Court in the case of M/s Vijay Shree Limited ITA No.245 of 2011, held that if employees contribution to PF and ESI is paid before the due date of filing the return of income, no disallowance is made u/s 43B of the Act. Amendment to section 43B of the Act was held to have retrospective effect. The same view has been affirmed by the Hon ble Supreme Court in the case of Alum Extrusions Ltd. 319 ITR 306 (SC) wherein it was held that if the assessee paid the amount in respect of PF and ESI before the due date of filing return of income there should not be any disallowance. We note that the assessee s case under consideration, the PF and ESI w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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