Case Law Details
Doosan Power Systems India P.Ltd. Vs DCIT (ITAT Chennai)
We find that issue of belated payment of employees contribution to PF & ESI is allowable expenditure u/s.43B of the Act or not is no longer res integra. The Hon’ble Supreme Court in the case of M/s.Vinay Cements Ltd. (supra) and also in the case of CIT V. Alom Extrusions Ltd. reported in 319 ITR 306 has considered identical issue and held that employees contribution to PF & ESI is deductible, even if such payment is remitted beyond due date specified under respective Acts, but made on or before due date of furnishing return of income filed u/s.139(1) of the Act. The Hon’ble Madras High Court in the case of CIT Vs .M/s.Industrial Security & Intelligence India Pvt. Ltd., (supra) has considered an identical issue and held that belated payment of employees contribution to PF & ESI is deductible, if such payment is made on or before due date of filing return of income u/s.139(1) of the Act.
In this view of the matter and by respectfully following the decision of Hon’ble Supreme Court in the cases discussed herein above, we are of the considered view that Assessing Officer as well as DRP were erred in confirming disallowances towards employees contribution to PF & ESI. Hence, we direct the Assessing Officer to delete addition made towards disallowance of employees contribution to PF & ESI.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal filed by the assessee is directed against
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