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Employees’ PF/ ESI Contribution not covered by Section 43B
Case Law Details
- Case Name
- Commissioner of Income Tax II Vs Gujarat State Road Transport Corporation (Gujarat High Court at Ahmedabad): Tax Appeal No. 637 of 2013
- Appeal Number
- Only available for paid members
- Courts
- All High Courts, Gujarat High Court
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Considering section 36(1)(va) of the Income Tax Act, 1961 read with sub-clause (x) of clause 24 of section 2, it is held that with respect to the sum received by the assessee from any of his employees to which provisions of sub-clause (x) of clause (24) of section (2) applies, the assessee shall be entitled to deduction in computing the income referred to in section 28 with respect to such sum credited by the assessee to the employees’ account in the relevant fund or funds on or before the “due date” mentioned in explanation to section 36(1)(va). Consequently, it is held...
For consideration:
1. Section 2(24(x) treated employee’s contribution as income of the assessee.
2. Section 28 read with section 36(1)(va) allowed the deduction to the assessee of such amount in computing the income 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” as per the law instituted for such fund.
3. section 34B(b) read with proviso to section 43B is an exception if case is not fall with above because the word “any sum payable” by the assessee …..