TMI Blog2021 (4) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... OURT] CIT(A) directed the Assessing Officer to allow the actual amount paid before the due date of filing the returns under section 139(1) of the Act - HELD THAT:- As in this case, on perusal of the details of break-up of the PF/ESI contribution remitted on the actual dates as furnished by the ld. Counsel for the assessee, we find that the assessee has remitted the remittance of the employee s contribution to PF and ESI much before the filing of the return of income under section 139(1) of the Act on 26.09.2014 for the assessment year 2014-15. In view of the above facts and respectfully following the above decision of the Hon ble Jurisdictional High Court, we find no infirmity in the order passed by the ld. CIT(A) on this issue and accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. CIT(A) directed the Assessing Officer to allow the actual amount paid before the due date of filing the returns under section 139(1) of the Act. 3. Aggrieved, the Revenue is in appeal before Tribunal. By relying on the grounds of appeal, the ld. DR has argued that unlike the employers contribution, the employees part of contribution to PF and ESI are not allowable under section 43B of the Act since the said contributions are not paid within the due dates as specified in the respective Acts, and such unpaid employees contributions are liable for disallowance under section 36(1)(va) r.w. section 2(24)(x) of the Act. On the other hand, the ld. Counsel for the assessee has submitted that the issue involved in this appeal is squarely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not selected for scrutiny. Subsequently, the Assessing Officer noticed that there was escapement of income and hence reopened the assessments under Section 147 of the Income Tax Act by issuing notice under Section 148 of the Income Tax Act. While completing the re-assessment, the Assessing Officer disallowed the expenses claimed by way of Employee's contribution to PF and ESI holding that the assessee had not paid the employee's contribution of PF and ESI within the due dates specified under the respective Act. Aggrieved by the said order of assessment, the assessee preferred appeals before the Commissioner of Income Tax (Appeals) challenging the reopening as well as the disallowance. The Commissioner of Income Tax (Appeals) s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dustries P. Ltd. Vs. DCIT (supra) following the decision of Hon'ble Delhi High Court in the case of CIT Vs. Aimil Ltd. (321 ITR 508) held that even the employees contribution to provident fund is to be allowed as deduction if it is paid within due date for filing of return. While holding so, the Tribunal observed as under:- 6. We have heard the submissions made by the representatives of both the sides and have perused the orders of the authorities below, as well as the judgments/decisions relied on by the ld. Counsel for the assessee. It is an undisputed fact that there has been delay in remittance of employees contribution of ESI and Provident Fund in both the AYs i.e., 2008-09 2009-10. It is equally un-disputed that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rightly relied on the decision of the Supreme Court in the case of CIT V. Alom Extrusions Ltd. reported in 319 ITR 306, whereby, the Supreme Court held that omission of second proviso to Section 43B and amendment to first proviso by Finance Act, 2003 are curative in nature and are effective retrospectively, i.e., with effect from 1.4.1988 i.e., the date of insertion of first proviso. The Delhi High Court in the case of CIT V. Aimil Ltd. reported in 321 ITR 508 held that if the assessee had deposited employee's contribution towards Provident Fund and ESI after due date as prescribed under the relevant Act, but before the due date of filing of return under the Income Tax Act, no disallowance could be made in view of the provisions of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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