Disallowance untenable as employees’ cont. to ESI/ PF paid before date of return

ACIT Vs Amardeep Singh Bedi (ITAT Delhi)

No disallowance is called for, on belated payment of employees’ contribution to ESI and PF in case the assessee deposited the said contribution before due date for filing of return of income under Income Tax Act

Facts- The appeal is preferred by the revenue against CIT(A) order deleting the disallowance of Rs. 1,53,61,566/- being the delayed payment of employees’ contribution to ESI and PF under section 36(1)(va) of the Income Tax Act.

Conclusion– Tribunal in the case of Raj Kumar Vs. ITO has held that the amendment brought in by Finance Act, 2021 is effective from 1.04.2021 and no disallowance is called for, on belated payment of employees’ contribution to ESI and PF in case the assessee deposited the said contribution before due date for filing of return of income under Income Tax Act.
Held that “we direct the Assessing Officer to delete the disallowance made to employees’ contribution to EPF and ESI as the same were remitted before the due date of filing of return of income. Order of the ld. CIT (Appeals) is sustained”.

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