Section 36(1)(va) of the Income Tax Act

Income-tax Act, 2025: ss.29, 30, 31, 32

Section 36(1)(va) falls under section 36 of the Income-tax Act, 1961, which corresponds to section 29 (Deductions related to employee welfare), section 30 (Deduction on certain premium), section 31 (Deduction for bad debt and provision for bad and doubtful debt) and section 32 (Other deductions) of the Income-tax Act, 2025.

Read section 29 of the 2025 ActRead section 30 of the 2025 ActRead section 31 of the 2025 ActRead section 32 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 36(1)(va) is CIT v. AIMIL Ltd. (321 ITR 508), cited in 1,629 of the 6,054 judgments on BharatTax that turn on this section.

Leading authorities on Section 36(1)(va)

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. Ghatge Patil Transports Ltd.
368 ITR 749 · 2014 · High Court
609
citing judgments

Deduction for employees' contributions to PF and ESIC is allowable under Section 43B if paid before the due date for filing the return under Section 139(1); similarly, delayed deposits of employers' contributions to ESIC and PF are also allowable.

CIT v. State Bank of Bikaner & Jaipur
43 Taxmann.com 411 · 2014 · High Court
524
citing judgments

Employee contributions to provident fund, ESI, and other welfare funds, if deposited by the due date for furnishing the return of income under Section 139(1), are allowable as a deduction and cannot be disallowed under Section 36(1)(va) read with Section 2(24)(x) or Section 43B, even if deposited after the due date prescribed by the respective welfare Acts.

Essae Teraoka Pvt. Ltd. v. DCIT
366 ITR 408 · 2014 · High Court
519
citing judgments

An employer's delayed remittance of employees' contributions to provident fund (PF) or Employees' State Insurance (ESI) is deductible if the payment is made before the due date for filing the income tax return under section 139(1), applying the provisions of section 43B and notwithstanding section 36(1)(va).

CIT v. Bharat Hotels Ltd.
410 ITR 417 · 2019 · High Court
486
citing judgments

Employee contributions to provident fund and ESI, if paid beyond the due date prescribed by the respective welfare fund statutes, are not allowed as a deduction under the Income Tax Act.

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.

Judgments on Section 36(1)(va)

Odex India Solutions P Ltd., Mumbai vs. CIT (A), NFAC, Delhi

The appeals are dismissed

ITA 147/MUM/2023[2019-20]Status: DisposedITAT Mumbai31 May 2023AY 2019-20
For Appellant: Shri Bhadresh DoshiFor Respondent: Ms. Naina K. Kumar
Section 139(1)Section 143(1)Section 143(1)(a)Section 2(24)(x)Section 254Section 36(1)(va)Section 43B

DCIT Circle-1, Thane vs. M/S. Canterburg Tech-Bpo (India) Pvt. Ltd (, Mumbai

In the result, the appeal of the Revenue is allowed

ITA 629/MUM/2022[2018-19]Status: DisposedITAT Mumbai31 May 2023AY 2018-19

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2018-19 Dcit, Circle-1, Thane Room M/S Canterburg Tech-Bpo No. 22, B-Wing 6Th Floor, Ashar (India) Pvt. Ltd., It Park, Wagle Industrial Vs. Plot No. Cst-254, 2Nd Floor, Estate, Thane(W)-400604. Thakur Complex Station Road, Gonvandi, Mumbai-400088. Pan No. Aaccc 8523 B Appellant Respondent Assessee By : None Revenue By : Ms. Richa Gulati, Dr : Date Of Hearing 25/05/2023 Date Of Pronouncement : 31/05/2023 Order

For Appellant: NoneFor Respondent: Ms. Richa Gulati, DR
Section 139(1)Section 36Section 43B

Sanjay Suganchand Lodha, Mumbai vs. ADIT CPC, Bengluru

ITA 56/MUM/2022[2019-20]Status: DisposedITAT Mumbai31 May 2023AY 2019-20

Bench: Shri Prashant Maharishi & Shri Kuldip Singhassessment Year: 2019-20 Shri Sanjay Suganchand Asst. Director Of Income Lodha, Tax, Cpc Lodha Estate, Centralized Processing Behind Mittal Industrial Vs. Centre, Estate Building No.5, Income Tax Department, Marol Naka, Bengaluru-560 500 Mumbai – 400 059 Pan: Aaapl7043G (Appellant) (Respondent)

For Appellant: Shri Rahul Sharma, A.RFor Respondent: Shri Hiren M. Bhatt, D.R
Section 139(1)Section 143(1)Section 2(24)(x)Section 36(1)(va)

Creative Textile Mills Private Limited, Mumbai vs. DCIT CPC, Bangalore

In the result, the appeal of the assessee is dismissed

ITA 409/MUM/2022[2018-19]Status: DisposedITAT Mumbai31 May 2023AY 2018-19

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2018-19 Creative Textile Mills Pvt. Ltd., Dcit Cpc, 212, Cama Indl. Esate, Sun Post Box No. -1 Electronic Mill Compound, Lower Parel, Vs. City Post Office, Mumbai-400013. Karnataka-560 100. Pan No. Aaacc 5458 P Appellant Respondent Assessee By : Mr. Sunil Hirawat Revenue By : Ms. Richa Gulati Date Of Hearing : 22/05/2023 : Date Of Pronouncement 31/05/2023 Order

For Appellant: Mr. Sunil HirawatFor Respondent: Ms. Richa Gulati
Section 36(1)(va)

Joseph Leslie & Company LLP, Mumbai vs. Circle 22(1), Mumbai, Lalbaug

In the result, the appeal filed by the assessee is dismissed

ITA 297/MUM/2022[2018-19]Status: DisposedITAT Mumbai31 May 2023AY 2018-19

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2018-19 Joseph Leslie & Company Llp, Circle 22(1), 3Rd Floor, Leslico House, Piramal Chamber, Vs. Bhavani Shankar Road, Lalbaug, Parel, Dadar West, Mumbai-400012. Mumbai-400028. Pan No. Aahfj 7149 Q Appellant Respondent Assessee By : None Revenue By : Ms. Richa Gulati Date Of Hearing : 23/05/2023 Date Of Pronouncement : 31/05/2023 Order

For Appellant: NoneFor Respondent: Ms. Richa Gulati
Section 2Section 36Section 43B

Apcer Life Sciences India Limited, Mumbai vs. Assessing Officer, National E-Assessment Centre, Mumbai

In the result, the appeal filed by the assessee is partly allowed

ITA 2882/MUM/2022[2018-2019]Status: DisposedITAT Mumbai31 May 2023AY 2018-2019

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Apcer Life Sciences India Limited Assessing Officer G-040, Vikas Centre, 104, S V Road, National E-Assessment Centre, Vs. Santacruz (W), Mumbai-400 054 Delhi

For Appellant: Shri M. SubramanianFor Respondent: Shri Manoj Kumar Sinha
Section 115BSection 143(1)Section 143(3)Section 156Section 250Section 36(1)(va)

Liberty Oil Mills Limited, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle 3, Thane

In the result, the appeal filed by the assessee is allowed

ITA 212/MUM/2022[2019-20]Status: DisposedITAT Mumbai31 May 2023AY 2019-20

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2019-2020 Liberty Oil Mills Ltd., Dy. Cit Central Circle-3, 1-D Wing, Amerchand Income Tax Office, Qureshi Vs. Mansion, Madam Cama Mansion, Gokhale Road, Road, Colaba, Thane-400602 Mumbai-400039. Pan No. Aaacl 0888 N Appellant Respondent Assessee By : Mr. Gyaneshwar Kataram Revenue By : Ms. Richa Gulati, Dr : Date Of Hearing 30/05/2023 : Date Of Pronouncement 31/05/2023 Order

For Appellant: Mr. Gyaneshwar KataramFor Respondent: Ms. Richa Gulati, DR
Section 36(1)(va)Section 43B

Home First Finance Company India Ltd., Mumbai vs. ADIT (CPC) & DCIT, Circle 10(1)(1), Mumbai

In the result, appeal filed by the assessee is dismissed

ITA 2109/MUM/2022[2019-20]Status: DisposedITAT Mumbai31 May 2023AY 2019-20

Bench: Shri Br Baskaran, Am & Shri Aby T. Varkey, Jm आयकर अपील सं/ I.T.A. No.2109/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2019-20) Home First Finance बिधम/ Acit, Cpc (Respondent Company India Limited No.1) Vs. 511, Acme Plaza 136, Dcit, Circle-10(1)(1), Andheri Kurla Road, Mumbai (Respondent Andheri East-400059. No.2) 209, 2Nd Floor, Aayakar Bhawan, Mumbai- 400020. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aacch3317E (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Pratik Shah Revenue By: Dr. Samuel Pitta (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 26/05/2023 घोषणा की तारीख /Date Of Pronouncement: 31/05/2023 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. Cit(A)/Nfac, Delhi Dated 27.06.2022 For Ay. 2019-20. 2. Even Though, We Had Allowed The Appeal Vide Order Dated 28.09.2022, The Same Has Been Recalled In Ma No. 209/Mum/2023. The Only Issue Is Regarding The Disallowance Confirmed By Ld. Cit(A) Regarding Employee’S Contribution Towards Pf/Esi To The Tune Of Rs.42,34,050/-. 3. We Have Heard Both The Parties & Perused The Records. The Cpc Banglore Processed The Return Of Income U/S 143(1) Income Tax Act, 1961 (Hereinafter “The Act”) & Made Adjustment Of Rs.42,34,050/- U/S 36(1)(Va) R.W.S. 2(24)(X) Of The Act For Late Deposit Of Employee’S Contribution To Epf/Esic Beyond The Due Date As Prescribed In The Specified Act (Pf/Esic Acts). The Assessee Has Referred The Decision Of Hon’Ble Jurisdictional High Court In The Case

For Appellant: Shri Pratik ShahFor Respondent: Dr. Samuel Pitta (Sr. AR)
Section 143(1)Section 36(1)(va)

Gulermak-Tpl Pune Metro Joint Venture, Mumbai vs. Assistant Commissioner of Income Tax, Centralised Processing Centre, Bengaluru, Karanataka

In the result, appeal filed by the assessee is dismissed

ITA 1979/MUM/2022[2020-21]Status: DisposedITAT Mumbai31 May 2023AY 2020-21

Bench: Shri Br Baskaran, Am & Shri Aby T. Varkey, Jm

For Appellant: Shri Darshan KoikarFor Respondent: Dr. Samuel Pitta (Sr. AR)
Section 143(1)Section 36(1)(va)

Mehara Eyetech Pvt Ltd, Mumbai vs. Asstt Commissioner of Income Tax, Circle 1(3)(1), Mumbai

In the result, appeal filed by the assessee is dismissed

ITA 1684/MUM/2022[2020-2021]Status: DisposedITAT Mumbai31 May 2023AY 2020-2021

Bench: Shri B.R. Baskaran (Am) & Shri Aby T. Varkey (Jm)

Section 143(1)Section 36(1)(va)

Babubhai Jagjivandas, Mumbai vs. ADIT (CPC) (ACIT 19(1), Mumbai

In the result, the appeal filed by the assessee is dismissed

ITA 2316/MUM/2021[2018-19]Status: DisposedITAT Mumbai31 May 2023AY 2018-19

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2018-19 Babubhai Jagjivandas, Asstt. Director Of Income 128 Vishnu Niketan, Prathna Tax (Cpc), Bangalore [Acit Samaj Road, New Charni Vs. 19(1), Mumbai.] Road, Matru Mandir, Mumbai- Mumbai-400 004. 400 007. Pan No. Aaafb 5829 N Appellant Respondent Assessee By : None Revenue By : Mr. Suresh Periasamy, Dr : Date Of Hearing 29/05/2023 : Date Of Pronouncement 31/05/2023 Order

For Appellant: NoneFor Respondent: Mr. Suresh Periasamy, DR
Section 143(1)Section 3Section 36Section 36(1)(va)

M/S. P.A.Zaveri, Mumbai vs. ADIT, CPC, Begaluru

The appeals are dismissed

ITA 2057/MUM/2021[2019-20]Status: DisposedITAT Mumbai31 May 2023AY 2019-20
For Appellant: Shri Bhadresh DoshiFor Respondent: Ms. Naina K. Kumar
Section 139(1)Section 143(1)Section 143(1)(a)Section 2(24)(x)Section 254Section 36(1)(va)Section 43B

Mack Springs Pvt. Ltd, Mumbai vs. ADIT CPC, Bangalluru

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

ITA 1884/MUM/2021[2019-20]Status: DisposedITAT Mumbai31 May 2023AY 2019-20

Bench: Shri B. R. Baskaran, Am & Shri Aby T. Varkey, Jm आयकर अपील सं/ I.T.A. No.1884/Mum/2021 (निर्धारण वर्ा / Assessment Years: 2019-20) Mack Springs Pvt. Ltd. बिधम/ Adit Cpc, Bangaluru. 18 Khandelwal Mansion, Ac7(2)(1) Vs. Barrister Nath Paimarg, Aayakar Bhavan, 6Th Cotton Green, Mumbai- Floor, Bangaluru-560500. 400033, Maharashtra, India. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabcm8652J (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Ms. Mrugakshi Joshi Revenue By: Shri Prakash D. Chougule (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 22/05/2023 घोषणा की तारीख /Date Of Pronouncement: 31/05/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Company Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/(Nfac), Delhi Dated 28.07.2021 For Assessment Year 2019-20. 2. It Is Noted That This Appeal Was Initially Disposed Off By This Tribunal On 09.05.2022 By Allowing The Appeal Of The Assessee. However, The Same Have Been Recalled By This Tribunal On 13.04.2023 In The Light Of The Decision Of The Hon’Ble Supreme Court In The Case Of M/S. Checkmate Services Pvt. Ltd. (448 Itr 518) (Sc). 3. Brief Facts Are That The Assessee Had Filed The Return Of Income For Ay 2019-20 Which Was Processed U/S 143(1) Of The Act Raising A Demand Of Rs.2,35,771/- By Making An Addition/Disallowance Of Rs.8,58,426/- U/S 36(1)(Va) Of The Income Tax Act, 1961 (Hereinafter “The Act”) On The Ground That The Employee’S Contributions To Provident Fund Was Remitted By Assessee After The Due Dates Prescribed

For Appellant: Ms. Mrugakshi JoshiFor Respondent: Shri Prakash D. Chougule (Sr. AR)
Section 143(1)Section 36(1)(va)

Shri Mahabir Dyeing and Printing Mills Pvt. Ltd, Mumbai vs. DCIT 4(3) (1), Mumbai

In the result, appeal filed by the assessee is partly allowed

ITA 1829/MUM/2021[2018-19]Status: DisposedITAT Mumbai31 May 2023AY 2018-19

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Mahabir Dyeing & Printing V. Dcit – 4(3)(1) Mills Pvt. Ltd., Room No. 649, 6Th Floor Aayakar Bhavan 510/511, Kakad Market, 306 M.K. Road, Mumbai - 400020 Kalbadevi Road, Mumbai - 400002 Pan: Aaacm5098H (Appellant) (Respondent)

Section 139(1)Section 143(1)Section 143(1)(a)Section 36(1)(va)Section 40Section 40A(2)Section 41Section 43B

Sona Gold Agrochem Pvt Ltd, Patna vs. Adcir, CPC

In the result, the appeal of the assessee stands dismissed”

ITA 88/PAT/2021[2019-20]Status: DisposedITAT Patna31 May 2023AY 2019-20

Bench: Shri Rajpal Yadav, Vice- & Dr. Manish Borad

Section 143(1)Section 143(1)(a)

Shailender Narang, New Delhi vs. ITO, Ward 51(1), New Delhi

In the result, the appeal of the assessee is allowed

ITA 771/DEL/2023[2020-21]Status: HeardITAT Delhi31 May 2023AY 2020-21

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: Shri Sanjeev Puri, CAFor Respondent: Shri Om Prakash, Sr.DR
Section 143(1)Section 36(1)(va)Section 43BSection 44A

Aggarwal Hotels Pvt Ltd, Delhi vs. ACIT, Circle1(1), Delhi

In the result, the Appeal of the assessee is partly allowed for statistical

ITA 2756/DEL/2022[2019-20]Status: DisposedITAT Delhi31 May 2023AY 2019-20

Bench: Shri Anil Chaturvedi & Shri Yogesh Kumar U.S.

For Appellant: Department by: Shri Kanv Bali, Sr. DRFor Respondent: Shri Kanv Bali, Sr. DR
Section 139(1)Section 143(1)Section 32Section 36(1)Section 43B

ACIT Circle-1(1), Gurgaon vs. Bellsonica Auto Component Sh. India Private Ltd., Gurgaon

In the result, the Appeal in ITA No

ITA 1625/DEL/2022[2018-19]Status: DisposedITAT Delhi31 May 2023AY 2018-19

Bench: Shri Anil Chaturvedi & Shri Yogesh Kumar U.S.

For Appellant: Ms. Sonam Agarwal, CAFor Respondent: Shri Kanv Bali, Sr. D. R
Section 139Section 143(1)Section 36Section 36(1)(va)Section 43B

Shri Shashikumar S Mishra, Bharuch vs. Assistant Commissioner of Income Tax, Circle -1, Bharuch

ITA 99/SRT/2023[2017-18]Status: DisposedITAT Surat31 May 2023AY 2017-18

Bench: Shripawan Singh, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.97 To101/Srt/2023 (िनधा"रणवष" / Assessment Years: (2015-16 To 2019-20) (Virtual Court Hearing) Shri Shashikumar S Mishra Asstt. Commissioner Of Income-Tax, Circle-I, Bharuch Ayakar Bhawan, A/7, Ashirwad Nagar Society, Station Road, Bharuch-392001 Bholav, Bharuch-392001 Vs. Enterprises.Nihal@Yahoo.Com Deputy Commissioner Of Income- Tax, Central Circle-2, Vadodara, Aykar Bhawan, Vadodara-39007 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aoqpm 4008 N (अपीलाथ" /Appellant ) (""थ"/Respondent)

For Appellant: Shri Bharat Jhaveri, AdvocateFor Respondent: Shri Vinod Kumar, Sr-DR
Section 143(3)Section 36(1)(va)Section 40Section 41Section 43Section 43B

Shri Shashikumar S Mishra, Bharuch vs. Assistant Commissioner of Income Tax, Circle -1, Bharuch

ITA 98/SRT/2023[2016-17]Status: DisposedITAT Surat31 May 2023AY 2016-17

Bench: Shripawan Singh, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.97 To101/Srt/2023 (िनधा"रणवष" / Assessment Years: (2015-16 To 2019-20) (Virtual Court Hearing) Shri Shashikumar S Mishra Asstt. Commissioner Of Income-Tax, Circle-I, Bharuch Ayakar Bhawan, A/7, Ashirwad Nagar Society, Station Road, Bharuch-392001 Bholav, Bharuch-392001 Vs. Enterprises.Nihal@Yahoo.Com Deputy Commissioner Of Income- Tax, Central Circle-2, Vadodara, Aykar Bhawan, Vadodara-39007 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aoqpm 4008 N (अपीलाथ" /Appellant ) (""थ"/Respondent)

For Appellant: Shri Bharat Jhaveri, AdvocateFor Respondent: Shri Vinod Kumar, Sr-DR
Section 143(3)Section 36(1)(va)Section 40Section 41Section 43Section 43B