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TMI Blog2010 (7) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... essing, and manufacture and export of garments, filed its return for the assessment year 2005-06 declaring a total income of Rs.8,84,23,982/-. The case of the assessee was selected for scrutiny and notice under Section 143(2) was issued. In course of assessment, the assessing officer found that in Form No. 3CD the tax auditor had given and certified the details of contribution deducted from the employees' salary towards the Provident Fund (PF) and the contribution under the Employees State Insurance (ESI). The assessee had not fulfilled its obligation of depositing the Provident Fund contribution deducted from the employees' salary as well as its own contribution within the due date as stipulated under the statute. The total of late deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions contained in Section 2(24)(x) read with Section 36(1)(va) of the Act. The tribunal concurred with the order passed by the CIT(A) and expressed the view as follows: "4. We have carefully considered the submission of ld. DR. A finding has been recorded by ld. CIT(A) at page 4 that the contentions of the assessee have been examined with documentary evidence and provisions of the Act. She has further recorded out of addition of Rs.75,21,824/- a sum of Rs.72,46,570/- has been paid within due date ambit. No material has been brought on record to show that these findings of ld. CIT(A) are incorrect rather table reproduced in the assessment order clearly shows that all the payments have been made before the due date of filing the return. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is evident from the order, referred to the clause (v) of sub-section (1) of Section 36 and thereafter to clause (va) of the same and scanned the anatomy of 43B and referred to the decision in Vinay Cement Ltd. (supra) and relied on the decision in P.M. Electronics Ltd.(supra) wherein the substantial questions of law were framed, inter alia, whether the amounts paid on account of PF/ESI after due date are allowable in view of Section 43B read with Section 36(1)(va) of the Act and proceeded to hold as follows: "We may only add that if the employees' contribution is not deposited by the due date prescribed under the relevant Acts and is deposited late, the employer not only pays interest on delayed payment but can incur penalties also, for whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual payment made by due date specified under the provisions of the Act. The Bench while dealing with the same has opined thus: "11. Before we delve into this discussion, we may take note of some more provisions of the Act. Section 2(24) of the Act enumerates different components of income. It, inter alia, stipulates that income includes any sum received by the assessee from his employees as contributions to any provident fund or superannuation fund or any fund set up under the provisions of the Employees' State Insurance Act, 1948 (34 of 1948), or any other fund for the welfare of such employees. It is clear from the above that as soon as employees contribution towards provident fund or ESI is received by the assessee by way of deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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