Case Law Details
Deutsche India Pvt. Ltd Vs ADIT (ITAT Mumbai)
ITAT Mumbai held that deposit of employee’s contribution to provident fund after the due date prescribed under the relevant statue is not allowable as deduction under section 36(1)(va) of the Income Tax Act.
Facts- The assessee filed its return of income on 10/02/2021. The said return was processed u/s. 143(1) of the Act vide intimation dated 26/12/2021, after making an addition of Rs.6,30,42,740, on account of delayed payment towards employee’s contribution to provident fund under section 36(1)(va) of the Act.
CIT(A) vide impugned order dated 08/09/2022 dismissed the appeal filed by the assessee on this issue and held that if the employer fails to deposit the entire amount towards employees’ contribution on account of provident fund with concerned department on or before the due date under the relevant statute, the assessee shall not be entitled for deduction to that extent. Being aggrieved, the assessee is in appeal before us.
Conclusion- In the present case, it is undisputed that the employee’s contribution to provident fund was deposited by the assessee after the due date prescribed under the relevant statute but within the due date of filing the income tax return in accordance with section 139(1) of the Act. We find that the Hon’ble Supreme Court in Checkmate Services (P.) Ltd. (supra) held that payment towards employee’s contribution to provident fund after the due date prescribed under the relevant statute is not allowable as deduction under section 36(1)(va) of the Act.
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