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TMI Blog2023 (4) TMI 1412X X X X Extracts X X X X X X X X Extracts X X X X ..... .02.2023 passed by National Faceless Appeal Centre (NFAC) for the assessment year 2020-21. 2. The dispute in the present appeal is confined to disallowance of deduction claimed of Rs.21,13,137, being delayed payment of Employees Contribution to Provident Fund (PF) and Employees State Insurance (ESI). 3. Briefly, the facts are, while processing the return of income filed by the assessee for the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 143(1)(a)(iv) of the Act. In this context, he relied upon a decision of the Co-ordinate Bench in case of M/s. P.R. Packaging Services - ITA No.2376/Mum/2022 dated 07.12.2022. He submitted, since, the employees contribution to PF and ESI is not in the nature of expenditure, the auditor has not reported it as disallowable expenditure in the tax audit report. 6. Without prejudice, he submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Services P. Ltd. - CIT-I [2022] 143 taxmann.com 178 (SC), wherein, it has been held that unless employees contribution to PF and ESI are deposited within the due date prescribed under the relevant statute governing such payments, the amount in question has to be treated as income of the assessee in terms of section 36(1)(va) read with section 2(24)(x) of the Act. Therefore, the disallowance ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e payment made can be allowed as deduction under Section 37(1) of the Act. In so far as, learned counsel's contention that the due date should be calculated with reference to the due date for payment of salary, I direct the Assessing Officer to factually verify the date of payment of employees contribution to PF and ESI and in case they are found to have been paid within the due date prescribed un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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