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TMI Blog2023 (2) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessee had deposited employees' contributions qua PF, ESI and other welfare funds after the due date as prescribed in the relevant Acts, however, before the due date of filing of return of income u/s.139(1) of the Act, which resulted into addition of Rs. 1,97,58,882/- and Rs. 8,898/- respectively made by the AO on account of disallowance on the ground that there has been delay in deposit of aforesaid amounts beyond the due date of deposit prescribed under the PF and ESIC Acts. 3. The said disallowance was challenged by the Assessee before the Ld. Commissioner, who vide impugned order, directed the Assessing Officer to verify the actual date of payment with challans and if the payments are made before the due date of filing return, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the due date of filing of 'Return of Income' u/s 139 of the Act. 7. Admittedly the Hon'ble Apex Court in the cases of Rajasthan State Beverages Ltd (supra), CIT Vs. Alom Extrusion Ltd (supra) and CIT Vs. Vinay Cement Ltd (supra) clearly held the amount claimed on payment of PF and ESI if deposited on or before due date of filing of return, then the same cannot be disallowed u/s 43B or u/s 36(1)(va) of the Act. 7.1 The Hon'ble Punjab and Haryana High Court in the case of CIT Vs. M/s Hemla Embroidery Mills (P) Ltd. (366 ITR 167) (P&H HC) and in the case of CIT Vs. M/s Mark Auto Industries Ltd. (358 ITR 43) (P&H HC), has clearly held that the Assessee is entitled to claim deduction of employee's share of ESI& PF u/s.43B of the Act, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clear that the Hon'ble Courts have allowed the employees' contributions qua PF and ESI as expenditure on actual payment, may be made after the due date as prescribed in the relevant Acts, but before the due date of filing of return of income u/s.139(1) of the Act and also not drawn any distinction between the employee's and employer's share qua PF & ESI contributions, hence, the conclusion drawn by the ld. Commissioner in directing the Assessing Officer to allow deduction if the payments are found made before due date of filing the return, do not require any interference as the impugned order does not suffers from any perversity, impropriety and/or illegality, consequently issue raised by the Revenue Department is not tenable . 8. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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