Case Law Details
ATC Precision Components Pvt Ltd Vs DCIT (ITAT Delhi)
ITAT Delhi held that the deduction u/s 36(1)(va) of the Income Tax Act can be allowed only if the employees’ share in the relevant funds is deposited by the employer before the due date stipulated in respective Acts.
Facts- The sole grievance of the assessee in the present appeal is with respect to the addition of Rs.1,79,407/-made u/s 36(1)(va) of the Act. It is the contention of the assessee that though there was delay in depositing the employees contribution to PF and ESI before the due date prescribed but however all the dues have been deposited with the appropriate authorities before the filing of return of income and therefore no disallowance u/s 36(1)(va) of the Act is called for.
Conclusion-We find that Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. held that the deduction u/s 36(1)(va) of the Act can be allowed only if the employees’ share in the relevant funds is deposited by the employer before the due date stipulated in respective Acts.
We are of the view that the ratio of the aforesaid decisions of Hon’ble Apex Court is applicable to the present facts. We therefore, following the decision of Hon’ble Apex Court in the case of Checkmate Services Pvt. Ltd. find no reason to interfere with the order of lower authorities and thus the grounds of assessee are dismissed.
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