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TMI Blog2020 (2) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... ribution towards PF, ESIC etc.?" 3. It appears from the materials on record that the issue is with regard to addition of Rs. 15,20,519/on account of the late payment of the employees contribution towards Provident Fund Employees State Insurance Corporation, etc. The additions were made on account of the employees contribution to the PF / ESI as the same was not deposited within the prescribed period in law. The Assessing Officer made additions by invoking provisions of Section 36(1)(va) read with Section 2(24)(x) of the Act, 1961. 4. The assessee being dissatisfied with the assessing order preferred appeal before the CIT(A). The CIT(A) dismissed the appeal preferred by the assessee by holding that the PF / ESI contribution was not deposited within the prescribed time period. The assessee went in appeal before the Appellate Tribunal. The Appellate Tribunal placing reliance on the decision in the case of CIT vs. Gujarat State Road Transport Corporation reported in (2014) 41 taxmann.com 100 (Guj) quashed and set aside the order passed by the CIT(A). The Tribunal held as under: "13. We have heard the respective parties and we have also perused the relevant materials available on re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Collector of Customs, AIR 1997 SC 2658. We, therefore, see no legally sustainable merit in the case of the assessee and, respectfully following the judgment of Hon'ble jurisdictional High Court in the case of Gujarat State Road Transport Corporation (supra), dismiss the grievance of the assessee in principle. We may, however, add that a coordinate bench of this Tribunal, in the case of Rajjratna Metal Industries Ltd vs. ACIT (ITA NO.940/Ahd/2015; order dated 22.09.2017/ has observed as follows: "3. Assessee's latter substantive ground challenges correctness of both the lower authorities' action disallowing/adding a sum of Rs. 3,85,810/u/ s. 36(1)(va) r.w.s. 2(24) of the Act on account of late payment of employees' contribution to PF & ESI in question. There is no dispute that Hon'ble jurisdictional High Court's decision in CIT vs. Gujarat State Road Transport Corporation (2014) 366 ITR 170 (Guj) upholds such a disallowance in principle. The assessee's case however is that relevant due date has to be seen not from the relevant month of salary but the one pertaining to its payment. He then files a computation chart indicating it to have paid above emplo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s paid ignoring provisions of clause 38 of the Employees' provident fund scheme, 1952." 2. The issue arises in following background. The assessee is a private limited company. For the assessment year 201314, the assessee had filed the return of income declaring total income of Rs. 65,65,980/. The return was taken in scrutiny by the Assessing Officer. In the order of assessment passed by him under section 143(3) of the Income Tax Act, 1961 ('the Act' for short) a disallowance of employees' contributions towards provident fund and ESI amounting to Rs. 1,16,87,091/was made. This was on account of the fact that the assessee though had deducted such contributions, failed to deposit the same with the statutory authorities within the due date. The Assessing Officer referred to all such deductions and late depositing the contributions in the order of assessment. All these deposits would indicate that the assessee had made the deposits late beyond 20th of Month following the month for which such deduction was being made. The date of 20th of each month was chosen by the Assessing Officer was made considering the normal period of 15 days for making deposit and a further grace period of five ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, if any, and cash value of food concessions admissible thereon) for the time being payable to the employees other than an excluded employee, as the Central Government may fix. He shall within fifteen days of the close of every month pay the same to the fund "electronic through internet banking of the State Bank of India or any other Nationalized Bank authorized for collection" on account of contributions and administrative charge]: "Provided that the Central Provident Fund Commissioner may for reasons to be recorded in writing, allow any employer or class of employer to deposit the contributions by any other mode other than internet banking". 5. This provision thus requires an employer before paying the employee his wages to deduct the employee's contribution along with the employer's own contribution as fixed by the Government. It is further required that he shall within fifteen days of the close of every month pay the same to the fund such contribution and administrative charges. In terms of this provision thus, after deducting the employee's contribution towards the funds, the same has to be deposited with the Government within fifteen days of the close of every month. Ref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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