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TMI Blog2022 (7) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... vident fund or ESI is received by the assessee by way of deduction or otherwise from the salary/wages of the employees, it will be treated as 'income' at the hands of the assessee. It clearly follows therefrom that if the assessee does not deposit this contribution with provident fund/ESI authorities, it will be taxed as income at the hands of the assessee. However, on making deposit with the concerned authorities, the assessee becomes entitled to deduction under the provisions of Section 36(1)(va) of the Act. Section 43B(b), however, stipulates that such deduction would be permissible only on actual payment. This is the scheme of the Act for making an assessee entitled to get deduction from income insofar as employees' contribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 36(1)(va) of the Act on account of delayed deposit of employee's contribution towards PF and ESIC. 4. Heard and perused the record. 5. Giving thoughtful consideration to the matter on record and the contentions as raised it can be observed that, admittedly the assessee has deposited the impugned contributions to the PF/ESI though after due date as prescribed under the relevant provisions of PF/ESI Act but within the time allowed u/s. 43B i.e. up to the due date u/s. 139(1) for filing of income. 6. Regarding the amendments made through Finance Act, 2021, it is specifically mentioned by the legislature that the amendments are effective from 01.04.2021. Further the Memorandum explaining the Provisions in the Finance Bill, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties also, for which specific provisions are made in the Provident Fund Act as well as the ESI Act. Therefore, the Act permits the employer to make the deposit with some delays, subject to the aforesaid consequences. Insofar as the Income Tax Act is concerned, the assessee can get the benefit if the actual payment is made before the return is filed, as per the principle laid down by the Supreme Court in Vinay Cement (supra). 18. We, thus, answer the question in favour of the assessee and against the Revenue. As a consequence, the appeals filed by the assessees stand allowed and those filed by the Revenue are dismissed. 9. We further find that Hon'ble Delhi High Court in the case of SPL Industries vs. CIT (2011) 9 Taxmann.com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refrom that if the assessee does not deposit this contribution with provident fund/ESI authorities, it will be taxed as income at the hands of the assessee. However, on making deposit with the concerned authorities, the assessee becomes entitled to deduction under the provisions of Section 36(1)(va) of the Act. Section 43B(b), however, stipulates that such deduction would be permissible only on actual payment. This is the scheme of the Act for making an assessee entitled to get deduction from income insofar as employees' contribution is concerned. It is in this backdrop we have to determine as to at what point of time this payment is to be actually made. 8. Upon perusal of the aforesaid, we are of the considered opinion that the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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