TMI Blog2022 (5) TMI 1382X X X X Extracts X X X X X X X X Extracts X X X X ..... respective Act such as PF / ESIC etc. also provides that the amounts can be paid later on subject to payment of interest and other consequences and to get benefit under the Income Tax Act, an assessee ought to have actually deposited the entire amount as also to adduce evidence regarding such deposit on or before the return of income under sub-section (1) of Section 139 - where the PF and/or EPF, CPF, GPF etc., if paid after the due date under respective Act but before filing of the return of income under Section 139(1), cannot be disallowed under Section 43B or under Section 36(1)(va) of the IT Act. This view is rendered in CIT vs. Jaipur Vidyut Vitran Nigam Ltd.[ 2014 (1) TMI 1085 - RAJASTHAN HIGH COURT] , CIT vs. Udaipur Dugdh Utpada ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER PER RATHOD KAMLESH JAYANTBHAI, AM: This appeal is filed by the assessee aggrieved from the order of the Commissioner of Income Tax (Appeal)- I, Raipur [ Here in after referred as Ld. CIT(A) ] for the assessment year 2012-13 dated 05.06.2018. 2. The hearing of the appeal was concluded through audio-visual medium on account of Government guidelines on account of prevalent situation of Covid-19 Pandemic, both the parties have placed their written as well as oral arguments during this online hearing process. 3. The assessee has taken following grounds in this appeal; 1. On the facts and circumstances of the case, the CIT(A) has erred in sustaining the order the order of the AO. wherein the AO has erred in making d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the said fact is not under dispute and where such contribution has been deposited before the due date of filing of the return of income, no disallowance U/s 36(1)(va) of the Act can be made and in support, reliance was placed on the following decisions: Bihar State Warehousing Corporation Ltd. Vs. Commissioner of Income Tax Anr. (2016) 96 CCH 0112 PatHC Commissioner of Income Tax vs. Jaipur Vidyut Vitran Nigam Ltd. (2014) 88 CCH 0010 RajHC Commissioner of Income Tax vs. Aimil Ltd. Ors.*(2009) 77 CCH 1185 DelHC Premier Car Sales Ltd. vs. Assistant Commissioner of Income Tax (2022) 65 CCH 0054 Lucknow Trib Sandhu Automobiles Pvt. Ltd. vs. Deputy Commissioner of Income Tax (2022) 65 CCH 0063 Chd Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Payment by employer of employee contribution to a fund on or before due date Clause (24) of section 2 of the Act provides an inclusive definition of the income. Subclause (x) to the said clause provide that income to include any sum received by the assessee from his employees as contribution to any provident fund or superannuation fund or any fund set up under the provisions of ESI Act or any other fund for the welfare of such employees. Section 36 of the Act pertains to the other deductions. Sub-section (1) of the said section provides for various deductions allowed while computing the income under the head =Profits and gains of business or profession .Clause (va) of the said subsection provides for deduction of any sum received by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision of section 43B on employee contribution as well. There is a distinction between employer contribution and employee s contribution towards welfare fund. It may be noted that employee s contribution towards welfare funds is a mechanism to ensure the compliance by the employers of the labour welfare laws. Hence, it needs to be stressed that the employer s contribution towards welfare funds such as ESI and PF needs to be clearly distinguished from the employee s contribution towards welfare funds. Employee s contribution is employee own money and the employer deposits this contribution on behalf of the employee in fiduciary capacity. By late deposit of employee contribution, the employers get unjustly enriched by keeping the money bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to ESI and PF which have been collected by the assessee from its employees have thus been deposited well before the due date of filing of return of income u/s 139(1) of the Act. Till this provision is enacted in as the due amounts on one pretext or the other were not being deposited by the assessees though substantial benefits had been obtained by them in the shape of the amount having been claimed as a deduction but the said amounts were not deposited. It is pertinent to note that the respective Act such as PF / ESIC etc. also provides that the amounts can be paid later on subject to payment of interest and other consequences and to get benefit under the Income Tax Act, an assessee ought to have actually deposited the entire amount as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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