Case Law Details
SBW Udyog Limited Vs DCIT (ITAT Allahabad)
Deduction allowed for belated payment of employee contribution to PF/ESI, which is deposited beyond the due date stipulated under the relevant statutes governing PF/ESI, but the same stood deposited before the due date for filing of return of income.
Facts- The assessee filed its return of income u/s. 139(1) declaring a total income of Rs. 15,48,69,400/-. An amount of Rs.6,24,281/- was added to the income of the assessee on the grounds that the assessee has not deposited the employee share of PF/ESI collected/deducted by the assessee from the salaries of employees, to the credit of said employees maintained with relevant fund concerning PF/ESI within the time prescribed under the relevant statute concerning PF/ESI.
CIT(A) dismissed the appeal, accordingly, being aggrieved the assessee filed an appeal before ITAT.
Conclusion- We have observed that the Jurisdictional High Court in the case of Sagun Foundry Private Limited has held that deduction is to be allowed for belated payment of employee contribution to PF/ESI which is deposited beyond the due date stipulated under the relevant statutes governing PF/ESI, but the same stood deposited before the due date for filing of return of income as is prescribed u/s 139(1) of the 1961 Act.
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