Swach Pune Seva Sahkari Sanstha… vs DCIT | ITAT Pune 2022

Income Tax Appellate Tribunal, PUNE BENCH, ‘B’ PUNE

Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI

For Appellant: Shri Kiran Sanmane

For Respondent: Shri M.G. Jasnani

आदेश / ORDER

PER R.S. SYAL, VP :

This appeal by the assessee is directed against the order dated 27-07-2021 passed by the National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2018-19.

The only issue raised in this appeal is against the confirmation of disallowance of Rs.7,92,095/- made by the Swach Pune Seva Sahakari Sanstha Maryadit Assessing Officer (AO) u/s.36(1)(va) of the Act on account of late deposit of the Employees’ share of EPF and ESI etc.

Briefly stated, the facts of the case are that the AO made disallowance of Rs.7,92,095/- in the intimation u/s.143(1) of the Act on the ground that the assessee late deposited the employees’ share of EPF and ESI etc. The ld. CIT(A) affirmed the disallowance.

We have heard both the sides and gone through the relevant material on record. It is an admitted position that the assessee did deduct employees’ share of EPF and ESI and paid the same after the due date under the respective legislations but before the time stipulated for filing return u/s 139(1) of the Act. In our opinion, this issue is no more res integra in view of several judgments allowing deduction u/s 36(1)(va) of employees’ share of contribution deposited after due date under the respective Acts but before the date prescribed u/s 139 of the Act. The Hon’ble Himachal Pradesh High Court in CIT vs. Nipso Polyfabriks Ltd. (2013) 350 ITR 327 (HP) has held that there exists no difference between employees or employer’s contribution and both are to be allowed as deduction if deposited before the due date.

SWACH PUNE SEVA SAHKARI SANSTHA MARYADIT,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CPC, BENGALURU

Cases cited in this judgment