Section 43B of the Income Tax Act

Income-tax Act, 2025: s.37

Section 43B of the Income-tax Act, 1961 corresponds to section 37 (Certain deductions allowed on actual payment basis only) of the Income-tax Act, 2025.

Read section 37 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 43B is CIT v. AIMIL Ltd. (321 ITR 508), cited in 1,629 of the 7,161 judgments on BharatTax that turn on this section.

Leading authorities on Section 43B

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.

CIT v. Pruthvi Brokers & Shareholders
349 ITR 336 · 2012 · High Court
956
citing judgments

Appellate authorities can entertain fresh claims or revised computations of income made by an assessee, even if these were not submitted through a revised return of income.

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.

Kedarnath Jute Mfg. Co. Ltd. v. CIT
82 ITR 363 · 1971 · Supreme Court
654
citing judgments

Tax liability for an item of income or expenditure is determined solely by the provisions of the Income-tax Act. Entries in an assessee's books of account are not conclusive and do not govern the taxability or deductibility of an item, as the legal rights and obligations under the Act prevail.

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. Gujarat State Road Transport Corpn
41 Taxmann.com 100 · 2014 · High Court
540
citing judgments

Employees' contributions to provident fund or other welfare funds are deductible under section 36(1)(va) only if paid by the due date specified in the respective welfare fund enactments, and section 43B does not extend this period to the income tax return filing due date under section 139(1).

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.

Judgments on Section 43B

Senbo Engineering Limited, Kolkata vs. A.C.I.T., Circle-12(2), Kolkata

In the result, appeal of the assessee is partly allowed

ITA 499/KOL/2022[2017-2018]Status: DisposedITAT Kolkata22 Feb 2023AY 2017-2018

Bench: Shri Sanjay Garg, Hon’Ble & Dr. Manish Borad, Hon’Blei.T.A. No. 499/Kol/2022 Assessment Year: 2017-18 Senbo Engineering Limited Asst. Commissioner Of Income Vs Tax, Circle-12(2), Kolkata 87, Lenin Sarani Kolkata - 700013 [Pan : Aadcs6138B] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Sanjay Bhattacharya, Fca Revenue By : Shri Biswanath Das, Cit, D/R सुनवाई क" तार"ख/Date Of Hearing : 01/12/2023 घोषणा क" तार"ख /Date Of Pronouncement: 22/02/2023 आदेश/O R D E R Per Dr. Manish Borad: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of The National Faceless Appeal Centre, Delhi (Hereinafter The “Ld. Cit(A)”) Dt. 28/07/2022, Passed U/S 250 Of The Income Tax Act, 1961 (‘The Act’), For Assessment Year 2017-18. 2. Brief Facts Of The Case Are That The Assessee Is A Limited Company. Income Of Rs.2,53,38,150/- Declared In The Return Filed On 07/11/2017 Pertaining To Assessment Year 2017-18. Case Selected For Scrutiny Through Cass Followed For Serving Of Notices U/S 143(2) & 142(1) Of The Act. During The Course Of Assessment Proceedings The First Issue Dealt By The Ld. Assessing Officer Was Regarding Cessation Of Liability U/S 41 Of The Act. The Ld. Assessing Officer Noted That In The 3Cd Report, The Auditor Has Mentioned About The Application Of Section U/S 41(1) Of The Act For The Unpaid Liability Of Rs.47,19,644/-. The Ld. Assessing Officer Also Examined The Other Outstanding Liabilities & Noticed That Regarding Outstanding Credit Of Rs.1,13,76,781/-, Pertaining To Ten Parties, Assessee Failed To Provide Any Detail About The Transactions Carried Out With These Parties I.E.

For Appellant: Shri Sanjay Bhattacharya, FCAFor Respondent: Shri Biswanath Das, CIT, D/R
Section 143(2)Section 14ASection 2(24)(x)Section 250Section 36(1)(va)Section 41Section 41(1)

Assistant Commissioner of Income Tax, Circle - 3, Guwahati vs. M/S. Anupam Nirman Pvt. Ltd., Guwahati

In the result, appeal of the revenue is dismissed

ITA 172/GTY/2018[2012-13]Status: DisposedITAT Guwahati22 Feb 2023AY 2012-13

Bench: Shri Rajpal Yadav, Hon’Ble & Dr. Manish Borad, Hon’Blei.T.A. No. 172/Gty/2018 Assessment Year: 2012-13 Assistant Commissioner Of M/S. Anupam Nirman Private Income Tax, Circle-3, Guwahati Vs Limited 1St Floor, Kabita Mansion Rajgarh Link Road Chandmari Guwahati - 781003 [Pan : Aaica 4965 B] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Kishor Jain, Fca Revenue By : Shri N.T. Sherpa, Jcit सुनवाई क" तार"ख/Date Of Hearing : 20/12/2022 घोषणा क" तार"ख /Date Of Pronouncement: 22/02/2023 आदेश/O R D E R Per Dr. Manish Borad: The Present Appeal Is Directed At The Instance Of The Revenue Against The Order Of The Learned Commissioner Of Income Tax (Appeals) – Guwahati-2, Guwahati, (Hereinafter The “Ld. Cit(A)”) Dt. 27/03/2018, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act’), For Assessment Year 2012-13. 2. The Revenue Has Raised The Following Grounds Of Appeal:- “(I) That On The Facts & Circumstances Of The Case As Well As On The Points Of Law, The Ld. Cit(A) Has Erred In Deleting The Addition Of Rs. 1,20,77,310/- On Account Estimation Of The Net Profit @ 7% Of Total Turnover For The Year. (Ii) That On The Facts & Circumstances Of The Case As Well As On The Points Of Law, The Ld. Cit(A) Erred In Deleting The Addition Of Rs. 49,05,724/- On Account Of Disallowance Towards Interest Expense Against Loan Under Section 40(A)(Ia) Of The Income Tax Act, 1961. (Iii) That On The Facts & Circumstances Of The Case As Well As On The Points Of Law, The Ld. Cit(A) Erred In Deleting The Addition Of Rs. 11,26,247/- On

For Appellant: Shri Kishor Jain, FCAFor Respondent: Shri N.T. Sherpa, JCIT
Section 132Section 143(2)Section 143(3)Section 153CSection 250Section 40Section 43B