Case Law Details
Gopi Mani Kuttan Vs DCIT (ITAT Delhi)
In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Delhi branch, rejected an appeal by Gopi Mani Kuttan challenging the disallowance of employees’ contribution to Provident Fund (PF)/ESIC under Section 36(i)(va) r.w.s. 43B of the Income Tax Act.
The ITAT emphasized the fact that belated deposits of employees’ contribution to PF/ESIC must be considered as taxable income of the assessee under Section 2(24)(x) r.w. Section 43B of the Act. Furthermore, the deduction under Section 36(i)(va) of the Act would not be permissible on these belated payments.
Despite the appellant’s plea for a deduction under general provisions for expenditure under Section 37 of the Act, ITAT didn’t accept the argument as Section 37(1) permits deduction of expenditure not covered within Sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee. This effectively means that any expenditure specifically covered under Section 36(1)(va) would not extend to the general clause of Section 37(1).
FULL TEXT OF THE ORDER OF ITAT DELHI
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