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TMI Blog2021 (6) TMI 883X X X X Extracts X X X X X X X X Extracts X X X X ..... gs of Ld. CIT(A). Accordingly ground No. 1 raised by the revenue is dismissed. Delay in deposit of employees ESIC and labour welfare fund contribution - HELD THAT:- In the case of the assessee, it is observed from Tax audit report submitted by the assessee that, it has received from its employees towards Employee Contribution fund within dates but deposited to the fund houses before filing ITR - As considered that Sec 43B applies to both employee and employer contributions and if the contributions are paid to the fund houses before filing ITR, no disallowance u/s 36(1)(va) is warranted. It is established that when the employee deposits both of its contribution and employees' contribution to the fund houses before the date of filing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the additional depreciation of ₹ 3,18,05,283/- u/s 32(1)(iia) of the IT. Act, pertaining to Plants Machineries acquired and installed in the immediately preceding year but were put to use for less than 180 days in that year. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition mode on account of delay in deposit of employee's ESIC and Labour Welfare Fund Contribution u/s 2(24)(x) r.w.s. 36(1)(va) of the Act. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) has further erred in relying on the decision of the jurisdictional High Court in the case CIT vs Ghatge Pat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 2,3 and 4, we noticed that assessee has deposited the ESIC and labour welfare fund contribution of the employees beyond the date of due date of the respective Acts. We noticed from the chart of date of payment to the respective funds were listed on page 14 of the Ld. CIT(A) order and notice that there is a delay of only few days from the due date of payment. And the amount involved also is of ₹ 18,116/ . We noticed that Ld. CIT(A) deliberated the issue in detail by relying on various case laws of honorable jurisdictional High Court and Delhi High Court and also decisions of various tribunals and came to the conclusion as below: In the case of CIT vs. Ghatge Patil Transports Ltd.(2014) 368 ITR 769 also, Hon'ble Bombay H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are paid to the fund houses before filing ITR, no disallowance u/s 36(1)(va) is warranted. Thus it is established that when the employee deposits both of its contribution and employees' contribution to the fund houses before the date of filing ITR, the entire amount will be allowed as deduction in the profit and loss account of the assesse u/s 43B of Income-tax Act, 1961. In the light of aforesaid discussion and various judicial pronouncements, the A.O, is thus directed to delete the addition of ₹ 18,116/- made to the total income of the assessee u/s 36(1)(va) of the Act and allow the said addition u/s 43B of the Act. Therefore, this ground of appeal is allowed. 5. Considering the amount involved and delays involved of only f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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