Employees’ contribution to EPF/ESI after prescribed due date disallowed u/s 36(1)(va): Kerala HC

Unitac Energy Solutions (India) Pvt. Ltd. Vs ACIT (Kerala High Court) Kerala High Court held that when employees’ contribution to EPF/ESI not made within due date prescribed for making payments is liable to be disallowed under section 36(1)(va) of the Income Tax Act. Facts- The appellant is a company engaged in the business of providing infrastructure maintenance of more than 7000 telecom tower sites in the States of Kerala, Karnataka, and Tamil Nadu. During assessment proceedings, AO made two disallowances, namely, (1) U/s. 40(a)(ia) of the Act, and (2) U/s. 36(1)(va). The disallowance ...