Case Law Details
Chase Security Vs ITO (ITAT Bangalore)
Section 36(1)(va) and Section 43B(b) operate on totally different equilibriums and have different parameters for due dates, i.e., employee’s contribution is linked to payment before the due dates specified in the respective Acts and employer’s contribution is linked to payment before the due dates specified in the respective Acts and employer’s contribution is linked to the payment before the prescribed due date for filing of return u/s. 139(1) of Income Tax Act, 1961.The result of any failure to pay within the prescribed dates also leads to different results. In the case of employee’s contribution, any failure to pay within the prescribed due date under the respective PF Act or Scheme will result in negating employer’s claim for deduction permanently forever u/s.36(1 )(va).
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal by the assessee directed against the order dated 29.04.2021 by the NFAC, Delhi relating to Assessment Year 2018-19.
2. The only issue that arises for consideration in this appeal is as to whether the Revenue authorities were justified in disallowing payment made to ESI/PF being employees’ share of contribution under section 36(1)(va) of the Income Tax Act, 1961 (hereinafter called ‘the Act’).
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