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TMI Blog2023 (10) TMI 1421X X X X Extracts X X X X X X X X Extracts X X X X ..... Notwithstanding the above, the share of employer s contribution to recognized provident fund etc. continues to get deducted in the same previous year even if it is paid beyond the due date under the respective Acts but before the due date for filing of return u/s.139(1). Thus, hold that the authorities below were justified in not allowing deduction u/s.36(1)(va) in respect of employee s contribution to ESI/EPF. AR submitted that while making the disallowance, the CPC, Bengaluru considered not only the contribution by the employee s to these funds but also the contribution made by the employer as well - As we agree with the contention of the ld AR that deduction towards the employer s share of ESI/EPF etc. needs to be allowed in the year und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard the rival submissions and gone through the relevant material on record, it is seen that the issue of disallowance of employee s contribution to ESI and EPF etc. u/s.36(1)(va) has been set to rest by the Hon ble Supreme Court in the aforenoted case of Checkmate Services (supra) by holding that the delay in the deposit of the employee s share beyond the due date prescribed under the respective Acts has to be confirmed notwithstanding the fact that the amount was actually deposited before the due date u/s.139(1) of the Act. It is further noted that the Finance Act, 2021 has inserted Explanation 1 to section 36(1)(va) providing that the due date for the purpose of this clause means the date by which the assessee is required as an employer t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the employer only if it is actually paid by the stipulated date under the respective Acts. In case, such an amount is paid beyond the due date under the respective Acts but before the due date u/s.139(1) of the Act, the deduction is lost forever. Notwithstanding the above, the share of employer s contribution to recognized provident fund etc. continues to get deducted in the same previous year even if it is paid beyond the due date under the respective Acts but before the due date for filing of return u/s.139(1). In view of the above position, I hold that the authorities below were justified in not allowing deduction u/s.36(1)(va) in respect of employee s contribution to ESI/EPF. 5. The ld. AR submitted that while making the disallowance, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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