2017 (12) TMI 936

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..... gainst and in favour of the assessee. We find that the Coordinate Bench of this Tribunal at Visakhapatnam in the case of DCIT vs. Eastern Power Distribution Company of A.P. Ltd (2016 (9) TMI 1040 - ITAT VISAKHAPATNAM ) has considered all the above decisions referred to by the assessee as well as the DR and has held that there is no distinction between the employees’ and employer’s contribution of PF and if the total contribution is deposited on or before the due date of furnishing the return u/s 139(1) of the Act, then no disallowance can be made of employees contribution to PF.Respectfully following the decision of the Coordinate Bench on similar set of facts, this appeal of the assessee is allowed. - ITA No.766/Hyd/2017 - - - Dated:- 30- .....

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..... mis 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 Employees State Insurance Act, or any other fund for welfare of such employee is treated as income in hishands, it is allowable as an expenditure only if it is paid into thegovt. a/c on or before the due date prescribed under the relevant Act. Accordingly, he disallowed the employees contribution to the PF ESIC and brought it to tax. 3. Aggrieved, the assessee preferred an appeal before theCIT (A) by relying upon the decision of the Hon'ble AndhraPradesh High Court in the case of Hitech(India) Pvt. Ltd andothers vs. UOI, reported in (1997) 227 ITR 446 and also thedecision of the H .....

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..... he constitutional validity of section 43B and explanation to clause (va) of subsection(1) of section 36 were under consideration and the Hon'ble High Court has brought out that para materia both the sections are having the same effect and are not unconstitutional. Further,he also placed reliance upon the decision of the Coordinate Benchof this Tribunal in the case of ACIT vs. Tanla Solutions Ltd (ITANo.879/Hyd/2015) and the decision of the Coordinate Bench atVisakhapatnam in the case of DCIT vs. Eastern PowerDistribution Company of A.P. Ltd (ITA No.609/Vizag/2014). 5. The learned DR, on the other hand, supported the orders of the authorities below and tried to bring out the distinction between the proviso to section 43B and section36 .....

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