Which cases are most cited on Section 2(24)(x)?

CIT v. AIMIL Ltd. (321 ITR 508) — 1,629 citing judgments; Checkmate Services Pvt. Ltd. v. CIT (143 Taxmann.com 178) — 1,392 citing judgments; CIT v. Alom Extrusions Ltd. (319 ITR 306) — 1,344 citing judgments; CIT v. Gujarat State Road Transport Corporation (366 ITR 170) — 1,158 citing judgments; 279 ITR 331/149 Taxman 15 (Guj.); 5. CIT v. Sabari Enterprises (298 ITR 141) — 706 citing judgments.

How many judgments are there on Section 2(24)(x)?

BharatTax indexes 2,270 ITAT, High Court and Supreme Court judgments that turn on Section 2(24)(x) of the Income Tax Act, 1961.

Section 2(24)(x) of the Income Tax Act

Q: What is the leading case on Section 2(24)(x) of the Income Tax Act?

CIT v. AIMIL Ltd. (321 ITR 508) is the decision most relied on for Section 2(24)(x), cited in 1,629 judgments. Employee contributions to PF and ESIC, deposited beyond the due date under the respective Acts but within the due date for filing the income tax return under Section 139(1), are allowable deductions under Section 36(1)(va). Such disallowance cannot be made during processing under Section 143(1).

The decision most relied on for Section 2(24)(x) is CIT v. AIMIL Ltd. (321 ITR 508), cited in 1,629 of the 2,270 judgments on BharatTax that turn on this section.

Leading authorities on Section 2(24)(x)

CIT v. AIMIL Ltd.

321 ITR 508 · 2010 · High Court

1,629

citing judgments

Employee contributions to PF and ESIC, deposited beyond the due date under the respective Acts but within the due date for filing the income tax return under Section 139(1), are allowable deductions under Section 36(1)(va). Such disallowance cannot be made during processing under Section 143(1).

Checkmate Services Pvt. Ltd. v. CIT

143 Taxmann.com 178 · 2022 · Supreme Court

1,392

citing judgments

Employee contributions to provident fund and ESI deposited by an employer beyond the due dates prescribed under the respective special Acts are not allowable as a deduction under section 36(1)(va) of the Income-tax Act, 1961. Such disallowance can be made during processing under section 143(1).

CIT v. Alom Extrusions Ltd.

319 ITR 306 · 2009 · Supreme Court

1,344

citing judgments

A proviso inserted into a section to remedy unintended consequences, make the section workable, or supply an obvious omission must be read retrospectively in operation to give effect to the section as a whole.

CIT v. Gujarat State Road Transport Corporation

366 ITR 170 · 2014 · High Court

1,158

citing judgments

Employees' contributions to welfare funds, such as provident fund, are not allowable as a deduction under section 36(1)(va) if deposited beyond the due date prescribed under the respective welfare statutes, even by a single day. Such delayed deposits are not cured even if made before the income-tax return filing due date.

279 ITR 331/149 Taxman 15 (Guj.); 5. CIT v. Sabari Enterprises

298 ITR 141 · 2008 · High Court

706

citing judgments

Employee contributions to provident fund or ESI, even if deposited after the due date specified in the respective welfare statutes, are allowable as a deduction under Section 36(1)(va) if paid before the due date for filing the income-tax return. This judgment aligns the treatment of employee contributions with employer contributions under Section 43B.

CIT v. Nipso Polyfabriks Ltd.

350 ITR 327 · 2013 · High Court

425

citing judgments

Deduction for employee contributions to EPF/ESI is allowable under section 43B if paid before the due date for filing the return of income under section 139(1), irrespective of the due dates under the respective welfare fund statutes.

Commissioner of Income-Tax, Udaipur v. Udaipur Dugdh Utpadak Sahakari Sandh Ltd.

35 Taxmann.com 616 · 2013 · High Court

304

citing judgments

No disallowance can be made under Section 36(1)(va) or Section 43B for delayed payment of employee's contributions to ESI or PF if these amounts are deposited by the assessee on or before the due date for filing the return of income under Section 139(1). This aligns the treatment of employee contributions with employer contributions for allowability.

M/s Mahadev Cold Storage v. Jurisdictional AO

43 Taxmann.com 33 · 2014 · High Court

262

citing judgments

Employees' contributions to welfare funds are an allowable deduction if paid before the due date for filing the income-tax return under section 139(1), even if the payment is made beyond the due date specified by the respective welfare fund Acts, as per the provisions of section 43B.

13/257 Taxman 120/406 ITR 150 (Ker.) 2. CIT v. Gujarat Road Transport Corpn

223 Taxmann 398 · 2014 · High Court

220

citing judgments

CIT v. Hindustan Organic Chemicals Limited

366 ITR 1 · 2014 · High Court

206

citing judgments

Employees' contribution towards Provident Fund (PF) and Employees' State Insurance Corporation (ESIC) is allowable as a deduction under Section 36(1)(va) read with Section 43B if deposited before the due date of filing the income tax return, even if deposited after the expiry of the statutory time period specified in the applicable fund's statute.

Judgments on Section 2(24)(x)

Dee Gee Saw & Metal Works Private Limited, Lucknow vs. The Assistant Commissioner of Income Tax -2, Lucknow

In the result, both the appeals of the assessee stand allowed

ITA 120/LKW/2021[2018-2019]Status: DisposedITAT Lucknow30 May 2022AY 2018-2019

Bench: Shri. A. D. Jain & Shri T. S. Kapoor

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Shri Harish Gidwani, D.R

Section 154Section 2Section 36(1)(va)

Khilari Infrastructure Pvt. Ltd, Mumbai vs. ADIT CPC, Bangalore

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 238/MUM/2022[2019-20]Status: DisposedITAT Mumbai30 May 2022AY 2019-20

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.238/Mum/2022 (निर्धारण वर्ा / Assessment Years: 2019-20) Khilari Infrastructure Pvt. बिधम/ Asst. Director Of Income Ltd. Tax, Cpc, Bangaluru- Vs. 101, Prabhat Centre Annex, 560500. Sector-1A, Cbd Belapur, Navi Mumbai-400614. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aafca9143A (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri H. S. Raheja (Adv.) Revenue By: Shri Vijay Kumar Soni (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 12/05/2022 घोषणा की तारीख /Date Of Pronouncement: 30/05/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) In National Faceless Appeal [Nfac], Delhi Dated 27.12.2021 For The Assessment Year 2019- 20. 2. The Only Grievance Of The Assessee Is Against The Action Of The Ld. Cit(A) Confirming The Action Of The Ao(Cpc) Making Disallowance Under The Head Of Pf/ Esi For Delayed Payment U/S 36(1)(Va) R.W.S. 2(24)(X) & Section 43B Of The Income Tax Act, 1961 (Hereinafter “The Act”). At The Outset, The Ld. Ar Of The Assessee Brought To Our Notice That The Issue Involved In This Appeal Is No Longer Res-Integra & Drew Our Attention To The Decision Of Co-Ordinate Bench Of This Tribunal On This Issue In The Case Of Rajesh Kumar

For Appellant: Shri H. S. Raheja (Adv.)For Respondent: Shri Vijay Kumar Soni (Sr. AR)

Section 139(1)Section 36(1)(va)Section 43B

Bhagwanti Rubber and Allied Products Private Limited, Kanpur vs. Assistant Director of Income Tax, CPC, Bengaluru

In the result, the appeal of the assessee stands allowed

ITA 31/LKW/2022[2019-2020]Status: DisposedITAT Lucknow26 May 2022AY 2019-2020

Bench: Shri T. S. Kapoor

Section 139Section 139(1)Section 143(1)Section 143(1)(a)Section 2(24)(x)Section 36(1)(va)Section 43B

Vikash Agarwal, Kanpur vs. Assistant Director of Income Tax, CPC, Bengaluru

In the result, the appeal of the assessee stands allowed

ITA 126/LKW/2021[2019-20]Status: DisposedITAT Lucknow26 May 2022AY 2019-20

Bench: Shri T. S. Kapoor

Section 139Section 139(1)Section 143(1)Section 143(1)(a)Section 2(24)(x)Section 36Section 36(1)(va)Section 43B

Unnati Writing Products Pvt. Ltd., Kolkata vs. DCIT, CPC, Bangalore

In the result, the appeal of the assessee stands allowed

ITA 563/KOL/2021[2019-20]Status: DisposedITAT Kolkata26 May 2022AY 2019-20

Bench: Shri Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Ble] I.T.A. No. 563/Kol/2021 Assessment Year: 2019-20 Unnati Writing Products Pvt. Ltd........................................................................................................Appellant 22, Buroshibtolla Main Road, Kolkata – 700 038. [Pan: Aaacu 9771 H] Vs Dcit, Cpc, Bengaluru ..................………………………………………......................................................Respondent Appearances By: None Appeared On Behalf Of The Assessee. Shri Gautam Mondal, Acit Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : May 25, 2022 Date Of Pronouncing The Order : May 26, 2022

Section 139Section 139(1)Section 2(24)(x)Section 250Section 36(1)(va)Section 43B

Beauty Impex (P) Ltd, Kolkata vs. ITO, Ward-9(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 541/KOL/2021[2019-20]Status: DisposedITAT Kolkata26 May 2022AY 2019-20

Bench: Shri Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Bleassessment Year: 2019-20 Beauty Impex Pvt. Ito, Ward-9(1), Kolkata Ltd. 21/5, Old Nimta Road, Vs. Barrackpur, North 24 Parganas – 700056. Pan: Aabcb 6201 C (Appellant) (Respondent) Present For: Appellant By : None Respondent By : Shri Gautam Mondal, Acit Date Of Hearing : 25.05.2022 Date Of Pronouncement : 26.05.2022 O R D E R Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 12.11.2021 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). The Assessee In This Appeal Has Taken The Following Grounds Of Appeal: “1. That On The Facts & In The Circumstances Of The Case, The Ld. Cit(Appeals) (Nfac) Has Erred In Law As Well As On Facts In Passing An Order U/S 250 By Dismissing The Appeal Against Disallowance Of Sum Of Rs. 23,61,241/- Being Contribution Of Employees’ Share Towards Esi, Pf, Superannuation Fund Or Any Other Fund Set Up For The Welfare Of The Employee U/S 36(1)(Va) Read With Section 2(24)(X) Of The Income Tax Act, 1961 When The Payments Were Made Within The Due Dates Of Filing Of Return U/S 139 Of The Income Tax Act, 1961 & Hence Are Allowable. 2. For That The Appellant Craves Leave To Supplement, Cancel Or Otherwise Modify Any Of The Above Grounds Before Or At The Time Of Hearing.”

For Appellant: NoneFor Respondent: Shri Gautam Mondal, ACIT

Section 139Section 139(1)Section 2(24)(x)Section 250Section 36(1)(va)Section 43B