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

M/S. Sun Manufacturing Solutions, Bengaluru vs. Income Tax Officer, Ward-6(2)(1), Bengaluru

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

ITA 712/BANG/2021[2018-19]Status: DisposedITAT Bangalore26 May 2022AY 2018-19

Bench: Shri B. R. Baskaranassessment Year: 2018-19 M/S. Sun Manufacturing Solutions The Income Tax Officer Sy. No. 151, 11Th Main Road Ward – 6(2)(1) Peenya Indl. Area, 3Rd Phase Bengaluru Vs. Laggere Village Bengaluru 560058 Pan No : Abyfs6836P Appellant Respondent Appellant By : Miss Sunaiana Bhatia, Ca Respondent By : Shri Ganesh R. Ghale, Advocate Standing Counsel For Department Date Of Hearing : 25.05.2022 Date Of Pronouncement : 26.05.2022 O R D E R Perb.R. Baskaran: The Assessee Has Filed This Appeal Challenging The Order Dated 30/09/2021Passed By Ld. Cit(A), National Faceless Appeal Centre, Delhi & It Relates To The Assessment Year 2018-19. The Solitary Issue Urged In This Appeal Relates To Disallowance Of Rs.3,75,531/-, Being Employees Contribution To Provident Fund& Esi, Made Under Section 36(1)(Va) Of The Income-Tax Act,1961 ['The Act' For Short] In Ay 2018-19. 2. The Assessee Filed Its Return Of Income For Ay 2018-19 On 28.03.2019. The Return Of Income Was Processed U/S 143(1) Of The Act, Wherein The Disallowance Of Rs.7,65,472/- Was Made U/S M/S. Sun Manufacturing Solutions Page 2 36(1)(Va) Of The Act On The Ground That The Employees Contribution To Pf & Esi Has Been Paid By The Assessee Beyond The Due Date Prescribed In The Respective Acts. The Assessee Filed A Rectification Petition Objecting To The Disallowance Made & In The Rectification Order, The Addition Was Sustained To The Extent Of Rs.3,75,531/-.

For Appellant: Miss Sunaiana Bhatia, CAFor Respondent: Shri Ganesh R. Ghale, Advocate
Section 139(1)Section 143(1)Section 36Section 36(1)(va)

Sri Pbn Construction Pvt. Ltd., Siliguri vs. ACIT, Cir-3(1), Siliguri, Darjeeling

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

ITA 235/KOL/2021[2018-19]Status: DisposedITAT Kolkata24 May 2022AY 2018-19

Bench: Shri Rajesh Kumar, Hon’Ble & Shri Sonjoy Sarma, Hon’Ble] I.T.A. No. 235/Kol/2021 Assessment Year: 2018-19 Pbn Constructions (P) Ltd.......................................................................................................Appellant C/O. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2Nd Floor, Kolkata – 700 069. [Pan: Aaecp 4743 L] Vs Acit, Circle-3(1), Siliguri ..................……………………………………….................................Respondent Appearances By: Shri Siddarth Agarwal, Advocate Appearing On Behalf Of The Assessee Shri Surendra Kumar Mishra, Acit Appearing On Behalf Of The Revenue: Date Of Concluding The Hearing : May 11, 2022 Date Of Pronouncing The Order : May 24, 2022 Order Per Sonjoy Sarma, Jm: This Is An Appeal Filed By The Assessee Against The Order Of National Faceless Appeal Centre, Delhi [Hereinafter Referred To As The ‘Nfac’] Dated 01.04.2021 For A.Y. 2018-19. 2. At The Outset, It Is Noted That There Is A Delay Of 57 Days On The Part Of The Assessee In Filing This Appeal Before The Tribunal. In This Regard, The Assessee Has Filed An Application Seeking Condonation Of The Said Delay & Keeping In View The Reasons Given Therein, We Are Satisfied That There Is A Sufficient Cause For The Delay Of 57 Days On The Part Of The Assessee In Filing This Appeal Before The Tribunal & Delay In Filing The Instant Appeal Is Accordingly Condoned.

For Respondent: Date of concluding the hearing : May 11, 2022
Section 139(1)Section 143(1)Section 36(1)(va)Section 43B