Disallowance u/s 36(1)(va) on payment of PF/ESIC after the due date under the respective Labour Law was valid

Aroma Aromatics and Flavours Vs CIT(A) (ITAT Delhi)

Conclusion: Disallowance under section 36(1)(va) on account to late deposit of employees contribution of provident fund was justified as employees’ contribution retained its character as income by virtue of section 2(24)(x) unless the conditions spelt by Explanation to section 36(1)(va) were satisfied i.e. depositing such amount received or deducted from the employee on or before the due date.

Held: Ass

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