PF/ ESI deposited late but before filing of return is allowable as deduction

Dayal Industries Pvt. Ltd Vs DCIT (ITAT Delhi)

Facts- The issue involved in the appeal is disallowance of employee’s contribution of PF/ ESI on account of delay in deposits as per the respective Acts.

Conclusion- We are of the view that the AO was not justified in denying the deduction claimed by the assessee on account of late deposit of PF/ESI/EPF, albeit before filing the return of income.

We have proceeded to conclude the issue of allowability of expenses attributable to employee provident fund and employee state insurance scheme on the assurance that the employee’s contributions towards PF & ESI have been deposited before the due date of filing of return of income.

FULL TEXT OF THE ORDER OF ITAT DELHI

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