PF-ESI due date aligned with Payment Month, Expenses can be claimed u/s 37 instead of 36(1)(va)

Sentinel Consultants P. Ltd. Vs ACIT (ITAT Delhi) The case brought forth key considerations regarding the due date for contributions to the PF-ESI. While the Income Tax Act 1961 stipulates a Mercantile System, the ESIC & PF Act dictates that contributions be deducted when salaries are paid, not when due. This interpretation implies a due date for April’s wages would be the 15th of June rather than May, giving a significant reprieve for those who pay salaries in arrears. Hon’ble Apex court in the case of Checkmate Pvt Ltd (2022) 143 taxman.com 178 [SC] has stated that due date f...