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TMI Blog2022 (4) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... sited by the assessee employer before the due date in terms of interpretation rendered by the decision of Kanoi Paper and Industries Ltd. [ 2001 (5) TMI 139 - ITAT CALCUTTA-E] - We observe that the decision of the Hon ble Gujarat High Court [ 2014 (1) TMI 502 - GUJARAT HIGH COURT] does not apply where the payment has been made on or before the due date. The deduction under s.36(1)(va) in such case is available without any fetters. It may be pertinent to observe that disallowance u/s 43B r.w.s. 36(1)(va) of the Act in respect of non-payment of provident fund etc. within the due date is not intended to cover genuine and routine cases on late payment but only those where the employer has mis-utilized the funds collected from the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 30,31,719/- on account of late payment of Provident Fund under s.36(1)(va) of the Income Tax Act, 1961 (hereinafter referred to as the Act ). 5. The CIT(A) has relied upon the decision of the Hon ble Jurisdictional High Court in the case of CIT vs. Gujarat State Road Transport Corporation 265 CTR 64 (Guj.) [2014] and rejected the appeal of the assessee. 6. When the matter was called for hearing, none appeared on behalf of the assessee. The matter was accordingly proceeded ex parte. 7. The learned DR, on the other hand, relied upon the order of the CIT(A). 8. On careful perusal of case records, we find that assessee has agitated addition towards belated payment of employees contribution of PF under s.36(1)(va) r.w.s.2(24) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate is not intended to cover genuine and routine cases on late payment but only those where the employer has mis-utilized the funds collected from the assessee. 8.3 The addition/disallowance under s.43B of the Act for such delay of bare one or two days in depositing the employees provident fund would thus be wholly disproportionate to the default committed, if any. Thus, seen from any angle, the addition/disallowance under s. 36(1)(va) r.w.s. 2(24)(x) of the Act is not justified in the instant case. 9. In the result, the captioned appeal filed by the assessee is allowed. ITA No. 2268/Ahd/2018-A.Y. 2014-15 10. The issue of addition/disallowance under s.43B amounting to ₹ 30,31,719/- further enhanced to ₹ 38,75,050 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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