TMI Blog2020 (12) TMI 1143X X X X Extracts X X X X X X X X Extracts X X X X ..... of income - HELD THAT:- We allow the claim of the assessee for deduction towards employees contribution to PF which was deposited late beyond due date as prescribed under relevant statute governing PF, but the same stood deposited to the credit of employees with relevant fund before the due date for filing of return of income as prescribed u/s. 139(1). - ITA No. 830/Chny/2019 - - - Dated:- 3-12-2020 - V. Durga Rao, Member (J) And S. Jayaraman, Member (A) For the Appellant : I. Dinesh, Adv. For the Respondents : Abani Kanta Nayak, CIT ORDER S. Jayaraman, Member (A) The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)-7, Chennai, in ITA No. 66(T)/CIT(A)-7/2016-17 dated 31.01.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt which says that the due date as mentioned in Section 36(1)(va) includes the date of filing the Return; in the instant case the amounts being paid before the filing of the Return ought to have been allowed in full. 2.3 The CIT(A) erred in relying on the order of the Jurisdictional High Court in the case of Unifac Management Services India Pvt. Ltd. Vs. DCIT (409 ITR 225) and failed to see that the same is contrary to the judgment of the Hon'ble Division Bench. 3. Any other ground that may be raised at the time of hearing. 3. The case was heard through video conferencing. The Ld.AR submitted that the AO without due examination, mechanically, has disallowed the prior period expenses. The Ld.CIT(A) erred in upholding the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. This issue was elaborately considered by this Tribunal in the case of DCIT v. Repco Home Finance (P) Ltd., in ITA No. 2885/Chny/2017 dated 17.06.2020 reported in [2020] 117 Taxmann.com 233 (Chennai - Trib.), wherein, this Tribunal after examining the provisions of Sections 2(24)(x), 36(1)(va), 43B(b) and the decisions of the Hon'ble Apex Court in the cases of Alom Extrusions Ltd., reported in 319 ITR 306 (SC), Vinay Cement Ltd. 213 CTR 2108 (SC), the Delhi High Court decision in the case of Amil Ltd., reported in 321 ITR 508, the Madras High Court decisions in the case of CIT v. M/s. Industrial Security Intelligence India Pvt. Ltd., and also the Hon'ble single judge decision in the case of Unifac Management Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... object of the legislation found in the manner indicated before, then if another construction is possible apart from strict literal construction, then that construction should be preferred to the strict literal construction. Though equity and taxation are often strangers, attempts should be made that these do not remain always so and if a construction results in equity rather than in injustice, then such construction should be preferred to the literal construction. The Hon'ble Delhi High Court and Hon'ble Bombay High Court after considering, analyzing and interpreting the decision in the case of Alom Extrusion (supra) has held that it will apply both to employers and employee contribution and if the same is deposited before the due d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e if the employer does not deposit the contribution towards PF/ESI etc within due date as prescribed under relevant statute governing PF/ESI etc, the employers are visited with Interest for delayed deposit of PF/ESI as well Penalties for late deposit beyond the time stipulated under the relevant statute governing PF/ESI and other employees welfare funds. Reference is drawn to Section 7Q and 14 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Similarly, Hon'ble Madras High Court in the case of Industrial Security and Intelligence India Private Limited (supra) after considering and interpreting the decision of Hon'ble Supreme Court in the case of Alom Extrusion (supra) and Hon'ble Delhi High Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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