9911796707
TMI Blog2023 (5) TMI 1359X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. Disallowance for the month of August 2017 Sept. 2017 - assessee submitted that these payments were made in the following months, therefore the date of payment of salary should be considered the month in which the salary has been paid because the employee cannot contribute in the EPF/ESI without the payments made by the employer - In view of the above, we remit this issue to the AO with a direction to examine and decide the issue in the light of the above judgment. Accordingly this issue is allowed for statistical purpose. Employees contribution to EPF ESI - submission of the assessee is that these remittances were within the due date for filing return u/s. 139(1) though they were belated payments under the respective Acts and hence no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration and sweets etc. It filed return of income for AY 2018-19 declaring total income of Rs.1,04,89,720. The return was processed u/s. 143(1) of the Act determining total income of Rs.1,22,14,931, disallowing Rs.17,25,211 towards delay in payment of employees contribution to PF and ESI u/s. 36(1)(va) of the Act. 4. On appeal before the CIT(Appeals), the assessee submitted that out of Rs.17,25,211, a sum of Rs.15,55,547 was paid within the due date as per the EPF ESI Acts and the balance of Rs.1,29,106/- was paid within the due date for filing return as per 139(1) of the Act. However, there was inadvertent error while filing Form 3CD in mentioning the correct qualifying dates of remittances. The correct details of contribution to EPF and ES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been disallowed u/s. 143(1)(a) of the Act. The assessee placed reliance on various decisions of the High Courts and Tribunals. 8. However, the CIT(Appeals) dismissed the appeal of the assessee, against which the assessee is in appeal before the Tribunal. 9. The ld. AR reiterated the submissions made before the CIT(Appeals) and relied on the decision of Calcutta Bench of the Tribunal in the case of Kanoi Paper Industries Ltd. [2002] 75 TTJ 48 (Cal). He further submitted that the salary for the month of Aug. Sept. 2017 was paid in the subsequent month, therefore the due dates have to be considered from the actual date of payment of salary. Unless the salary is paid to the employees, employees contribution to the PF and ESI cannot be made. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s employees contribution to EPF and ESI is rejected. 13. It is submitted by the ld. AR that there was inadvertent error in Form 3CD in mentioning the correct dates and the relevant details to the extent of employees contribution to the extent of Rs.15,55,547 (14,97,770 + 57,777) have been already been reproduced in para 4 of this order. The assessee has produced copy of challans towards contribution to EPF and ESI. Since these documents have not been verified by the lower authorities, therefore, for the limited purpose of verification, this issue is remitted back to the AO for verification of the proof of payments as per section 36(1)(va) of the Act. The assessee is directed to produce the necessary documents in support of its claim. If the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of such contribution should be made forthwith. if for some reason or other the payment of salary for a particular month be held up for considerable period of time it cannot be said that the employer would be liable to make payments in respect of the employer s as well as employees contribution in respect of wages for such period within a period of 15 days from the close of the month to which the wages relates. On the other hand, in our view, most appropriate interpretation would be that the employer would be at liberty to make payment of the contribution concerned within 15 days (subject however to the further grace period) from the end of the month during which the disbursement of the salary is actually made and the contribution of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
