PLASTENE INDIA LTD.,,AHMEDABAD vs. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(1),, AHMEDABAD

Only ground raised in this appeal is against disallowance of employees’ PF contribution of Rs.20,23,808/- under section 36(1)(va) of the Income Tax Act, 1961 on the ground that it was not paid within due date.

In the return of income filed by the assessee for the Asstt.Year 2013-14, the assessee has claimed deduction of employees’ PF contribution amounting to Rs.20,23,808/-. The assessee contended before the AO that PF contribution was deposited before the due date of

Before us, the ld.counsel for the assessee reiterated contentions as were made before the Revenue authorities, whereas the ld.DR relied upon orders of the Revenue.

We have considered rival contentions and gone through the record. The AO has disallowed deduction of Employees’ PF contribution under section 36(1)(va) of the Income Tax Act, 1961. The ld.CIT(A) has upheld the disallowance by following decision of the Hon’ble Gujarat High Court in the case of CIT Vs. Gujarat State Road Transportation Corporation (supra). The ld.counsel for the assessee did not dispute about proposition that the Hon’ble Gujarat High Court has decided this issue against the assessee. Considering the Hon’ble High Court’s judgment, if PF contributions are not deposited within time limit provided in the respective Acts, i.e. Provident Fund and ESI Act, then deduction will not be admissible to the assessee. After considering the finding of the ld.CIT(A) we do not find any error in it. This ground of appeal is rejected.

In the result, appeal of the assessee is dismissed. Order pronounced in the Court on 10th May, 2018 at Ahmedabad.