9911796707
TMI Blog2022 (2) TMI 1477X X X X Extracts X X X X X X X X Extracts X X X X ..... though clarificatory in nature has come into effect from 1/4/2021, for the relevant year under consideration it would suffice that the employee s contribution deducted by the assessee is remitted in the Government Treasury within the due date of filing of the return of income as prescribed under the Act. Therefore, the disallowance made by the Ld. Revenue Authorities is deserved to be deleted. Similar view was expressed in the case Salzgitter Hydraulics (P.) Ltd [ 2021 (6) TMI 1059 - ITAT HYDERABAD] - Hence, we hereby direct the Ld. AO to delete the addition made in the hands of the assessee towards disallowance of payment made in regard to the employee s contribution to PF ESI fund. Appeal of the assessee is allowed. - Shri A.D. Jain, V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployees as contribution to any provident fund or superannuation fund or any fund set up under the provisions of ESI Act or any other fund for the welfare of such employees. Section 36 of the Act pertains to the other deductions. Sub-section (1) of the said section provides for various deductions allowed while computing the income under the head Profits and gains of business or profession . Clause (va) of the said sub-section provides for deduction of any sum received by the assessee from any of his employees to which the provisions of sub-clause (x) of clause (24) of section 2 apply, if such sum is credited by the assessee to the employee's account in the relevant fund or funds on or before the due date. Explanation to the said clause p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mployers of the labour welfare laws. Hence, it needs to be stressed that the employer s contribution towards welfare funds such as ESI and PF needs to be clearly distinguished from the employee s contribution towards welfare funds. Employee s contribution is employee own money and the employer deposits this contribution on behalf of the employee in fiduciary capacity. By late deposit of employee contribution, the employers get unjustly enriched by keeping the money belonging to the employees. Clause (va) of sub-section (1) of Section 36 of the Act was inserted to the Act vide Finance Act 1987 as a measures of penalizing employers who mis-utilize employee s contributions. Accordingly, in order to provide certainty, it is proposed to (i) amen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
