DCIT 15(2)(2), MUMBAI vs. PRINT HOUSE (INDIA) P.LTD, MUMBAI

By the impugned order CIT(A) allowed assessee’s claim by observing as under: “I have carefully considered the finding of the AO and the submissions above. In support of the contention that section 43B is not applicable to payments made beyond the due date in respect of employees contribution to PF/ESIC as per provisions of section 36(1)(va) the appellant relied on the decision of ITAT Mumbai in the case of M/s. Pranav Aditya Spinning Mills in and the jurisdictional HC decision in the case of Hindustan Organic Chemicals Ltd. 366 ITR 1. I find the issue is squarely covered by the decision of the High Court in the above mentioned case.”

The issue under consideration is squarely covered by the Bombay High Court 366 ITR 1 wherein it was held that if the contribution is paid before last date u/s 36(1)(va) r.w.s. 2(24)(X) the same cannot be disallowed. Hon’ble High Court in the case of CIT vs. Alom Extrusion Ltd 319 ITR 306 held that provision to section 43B by the Finance Act 2003 … retrospective w.e.f. 01.04.1998. Accordingly contribution payable by the employee to the PF or any other mode for the welfare of the employees was allowable if paid before due date of filing return