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Income Tax Appellate Tribunal, ‘C’ SMC BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN
आदेश /O R D E R
This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -16, Chennai, dated 22.01.2019 and pertains to assessment year 2008-09.
The only issue arises for consideration is disallowance of employees’ contribution to the Provident Fund and ESI.
Having heard the Ld. representative for the assessee and the Ld. Departmental Representative, This Tribunal finds that there is no dispute that the entire payment of employees’ contribution was made before the date of filing of return of income under Section 139(1) of the Income-tax Act, 1961 (in short 'the Act'). In fact, majority of payment was made before the due date prescribed under the relevant statutes. Few payments were made with a delay of two or three days as prescribed under the relevant statutes. In view of the judgment of Madras High Court in CIT v. Industrial Security and Intelligence India (P.) Ltd. in TC(A). No.585 & 586 of 2015, the payment made before the filing of return of income under Section 139(1) of the Act has to be allowed. Therefore, this Tribunal is unable to uphold the orders of the authorities below.
Accordingly, orders of both the authorities below are set aside and the Assessing Officer is directed to allow the payment made by the assessee towards employees’ contribution to Provident Fund and ESI before filing of return of income under Section 139(1) of the Act.
In the result, the appeal filed by the assessee is allowed.