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TMI Blog2022 (4) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... (12) TMI 38 - DELHI HIGH COURT] and the decision of case of Pr. CIT Vs. Pro Interactive Service (India) Pvt. Ltd. [ 2018 (9) TMI 2009 - DELHI HIGH COURT] and also ratio of the decision of the Hon ble Supreme Court in the case of Vegetable Products Ltd. [ 1973 (1) TMI 1 - SUPREME COURT] the Tribunal decided the issue in favour of the assessee. Further find that identical issue came up before this bench in the case of Flying Fabrication Vs. DCIT [ 2021 (11) TMI 1041 - ITAT DELHI] wherein similar view has been taken. As direct the Assessing Officer to delete the disallowance made to contribution to EPF and ESI as the same were remitted before the due date of filing of return of income. Grounds raised by the assessee are allowed. - I.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of the Hon ble Karnataka High Court in the case of M/s. Essae Teraoka Pvt. Ltd. Vs. DCIT (2014) [(3) TMI 386] (Kar). However, the ld. CIT (Appeals) placed reliance on the decision of Hon ble Delhi High Court in the case of CIT Vs. Bharat Hotels Ltd. (2019) 410 ITR 417 (Del.) sustained the disallowance made by the Centralized Processing Centre (CPC) in disallowing the employees contribution to ESI and EPF. 3. The ld. Counsel for the assessee before me submits that assessee has remitted the employees contribution to ESI and EPF before the due date for filing the return of income with few days of delay from due dates as specified in the respective Acts. In other words, he submits that the contributions were remitted beyond the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s squarely covered by the decision of the jurisdictional High Court in the case of CIT Vs. AIMIL Ltd. (supra). Following this decision the Hon ble Delhi High Court in the case of Pr. CIT Vs. Pro Interactive Service (India) Pvt. Ltd. In ITA. No. 983/2018 (order dated 10.09.2018) decided the issue in favour of the assessee relying upon the judgement in the case of CIT Vs. AIMIL Ltd. (supra). Considering all these decisions the Tribunal in the case of Insta Exhibitions Pvt. Ltd. Vs. Addl. CIT in ITA. No. 6941/Del/2017 (order dated 03.08.2021) held that the employees contribution to EPF and ESI deposited before the due date of filing of return of income, but beyond the due date prescribed under the respective EPF and ESI laws is allowable as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering the decision of the Hon ble Delhi High Court in case of CIT vs. AIMIL Ltd.(2010) 321 ITR 508 (Del.). But the Ld. AR relied upon the decision of the Hon ble Delhi High Court in case of Pr. CIT vs. Pro Interactive Service (India) Pvt. Ltd. ITA No. 983/2018 pronounced on 10.09.2018 wherein the Hon ble High Court decided the issue in favour of the assessee relying upon the judgment of AIMIL Ltd. (supra). The Hon ble Delhi High Court held that the legislative intent was/is to ensure that the amount paid is allowed as expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee s Provident Fund (EPD) and Employee s State Insurance Scheme (ESI) as deemed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of this clause, due date means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. It is proposed to insert Explanation 2 to clause (va) of sub-section (1) of the said section so as to clarify that the provisions of section 43B shall not apply and shall be deemed never to have been applied for the purposes of determining the due date under the said clause. This amendment will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-2022 and subsequent assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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