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TMI Blog2015 (10) TMI 1458X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014 - - - Dated:- 22-7-2015 - Shri P.M. Jagtap and Shri Saktijit Dey, JJ. For the Petitioner : Shri Ramakrishna Bandi For the Respondent : Shri Mohd. Afzal ORDER PER SAKTIJIT DEY: This appeal by the department is directed against the order dated 18/08/2014 of ld. CIT(A)-V, Hyderabad for the AY 2011-12. 2. The only effective ground raised by the department is as under: The learned CIT(A) erred in deleting the addition on account of employees contribution to PF ESI holding that they were paid before the due date of filing of the return of income while there was no such provision in the Act . 3. Briefly, the facts are, assessee a company filed its return of income for the impugned AY on 30/09/2011 de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratio laid down in the decisions cited before him, deleted the addition by holding as under: 6.1 I fully agree with the case-laws cited by appellant in respect of the Apex Court and other High Courts holding that even if the employer s/employees contributions were not paid into the Govt. account before the due dates as prescribed under those Acts, but paid before the due date for furnishing of the return of income u/s 139(1), they are eligible to be allowed as deduction from the income. So, respectfully following the caselaws cited by the appellant and since the appellant has paid the employees /employer s contributions towards PF ESI before the due date for furnishing of return of income evident from the challans submitted, I hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delayed payment of employee s contribution to PF ESI is an allowable deduction u/s 43B. As can be seen, the Hon ble Gujarat High Court in case of CIT Vs. Gujarat State Road Transport Corporation (supra) has decided the issue against assessee by holding that employee s contribution to PF ESI is not covered under the provisions of section 43B. However, it is worth mentioning, in the very same decision, Hon ble Gujarat High Court has referred to decisions of at least four other high courts expressing the view that employee s contribution to PF and ESI if deposited within the due date of filing return u/s 139(1), same would be allowable as deduction. In fact, Hon ble HP High Court in case of Nipso Polyfabriks Ltd. (supra) while considering ..... X X X X Extracts X X X X X X X X Extracts X X X X
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