SMT RANJANA SINGH,KOLKATA vs. THE ITO, WD-48(3), KOLKATA, KOLKATA

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ITA 1265/KOL/2016Status: DisposedITAT Kolkata03 February 2017AY 2010-20112 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, following the decision of the Hon'ble Calcutta High Court in CIT vs. Coal India Limited, held that Employees' Contribution to PF and ESI is covered by Section 43B(b) of the Income Tax Act. Such contributions are allowable as a deduction if paid before the due date of filing the return of income for the relevant year.

What were the facts?

The assessee's appeal concerned a disallowance of Rs. 1,07,529/- made by the Assessing Officer and confirmed by the CIT(Appeals). This disallowance was on account of belated payment of Employees' Contribution to Provident Fund and Employees' State Insurance.

What were the issues?

Whether belated payment of Employees' Contribution to Provident Fund and ESI is allowable as a deduction under the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 43B(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: Shri P.M. Jagtap

Date of concluding the hearing : December 21, 2017 Date of pronouncing the order : February 03, 2017 O R D E R

This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax (Appeals)-XXX, Kolkata dated 10.03.2014 and the solitary issue involved therein relates to the disallowance of Rs.1,07,529/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of belated payment of Employees Contribution to Provident Fund and Employees State Insurance.

2.

I have heard the arguments of both the sides and also perused the relevant material available on record. As agreed by the ld. representatives of both the sides, the issue involved in the appeal of the assesee is squarely covered, inter alia, by the decision of the Hon’ble Calcutta High Court in the case of CIT –vs.- Coal India Limited (ITA 12 of 2015 dated 12th August, 2015), wherein it was held that the Employees Contribution to P.F. and E.S.I. is covered by section 43(B)(b) of the ./2016 Assessment year: 2010-2011 Page 2 of 2 Income Tax Act, 1961 and the same is allowable as deduction if it is paid beyond the due date prescribed in the relevant year but before the due date of filing of the return of income for the relevant year. Respectfully following the said decision of the Hon’ble Calcutta High Court, I delete the disallowance made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of belated payment of Employees Contribution towards P.F. and ESI and allow this appeal of the assessee.

3.

In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on February 03, 2017.

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