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TMI Blog2022 (2) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... rits also, this Tribunal has consistently viewed that the employees contribution to PF and ESI is allowable deduction if the same is paid before the due date of filing the return of income - See M/S ESSAE TERAOKA PVT LTD [ 2014 (3) TMI 386 - KARNATAKA HIGH COURT] . We are of the view that there is no distinction between employees' and employer contribution to PF and if the total contribution is deposited on or before the due date of furnishing return of income u/sec. 139(1) of the Act, then no disallowance can be made towards employees' contribution to PF/ESI. - Decided in favour of assessee. - I.T.A. No. 158/VIZ/2021 - - - Dated:- 16-2-2022 - SHRI DUVVURU R L REDDY, HON BLE JUDICIAL MEMBER And SHRI S. BALAKRISHNAN, HON'B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total 1358916 ESI Contribution S.No. Type of contribution Sum received from employee Month Due date of payment Date of remittance 1 ESI 6227 Apr 16 21/05/2016 25/05/2016 2 ESI 6090 Jul 16 21/08/2016 23/08/2016 3 ESI 7216 Aug 16 21/09/2016 23/09/2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the orders of the authorities below. The A.O. made additions towards belated payment of employees' contributions to PF and ESI under the respective Acts. According to the A.O., employees' contribution to provident fund and ESI, is deductible under the provisions of section 36(1)(va) of the Act, if the same is paid on or before the due date specified under the respective Act. The A.O. further was of the opinion that in view of the clear provisions of section 2(24)(x) r.w.s. 36(1)(va) of the Act, any recovery from employees towards provident fund and ESI contribution is deemed to be income of the assessee, if the employer had not paid the same to the account of the employee within due date specified under the provisions respectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, then there would have been two due dates like in the case of Income Tax Act. 8. On merits also, this Tribunal has consistently viewed that the employees contribution to PF and ESI is allowable deduction if the same is paid before the due date of filing the return of income. In the case of APEPDCL in I.T.A. No. 609/V/2014 dated 29.07.2016, the coordinate bench of ITAT, Visakhapatnam after considering the decision of Hon'ble Karnataka High Court in the case of Essae Teraoka (P) Ltd. Vs. DCIT 366 ITR 408 and the decision of coordinate bench of ITAT Hyderabad in the case of Tetra Soft (India) Pvt. Ltd. Vs. ACIT: (2015) 40 ITR (Trib) 470 and also taking support from the decision of Hon'ble Supreme Court in the case of CIT Vs. M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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