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 Mahavir Paints and Adhesives Pvt.Ltd, Kanpur vs. The Income Tax Officer, Ward 2(3)(3), Kanpur

In the result, the appeal of the assessee stands allowed

ITA 20/LKW/2022[2019-2020]Status: DisposedITAT Lucknow27 Apr 2022AY 2019-2020

Bench: Shri. A. D. Jainassessment Year: 2019-20 M/S Mahavir Paints & V. The Income Tax Officer Adhesives Pvt. Ltd. Ward 2(3)(3) 123/760-D, Fazal Ganj Kanpur Kanpur Tan/Pan:Aaacm9521B (Appellant) (Respondent) Appellant By: Shri Rakesh Garg, Advocate Respondent By: Shri Harish Gidwani, D.R. Date Of Hearing: 09 03 2022 Date Of Pronouncement: 27 04 2022 O R D E R This Is Assessee’S Appeal Against The Order Of The Ld. Cit(A), Nfac, New Delhi, Dated 20.12.2021, For Assessment Year 2019-20, Raising The Following Grounds Of Appeal: 1. Because The Cit(A)/Nfac Has .Erred On Facts & In Law In Upholding The Disallowance Of Rs.1,63,230/- Being Amount Paid Towards Esic & Epf Of The Employees, Which Amount Being Allowable Both On The Basis Of Interpretation Of The Statute & On The Basis Of The Decision Of The Apex Court In The, Case Of Allom Extrusion 319 Ir 306 (Sc). Pr. Cit Vs. Rajasthan State Beverages Corporation Ltd. & The Allahabad High Court In The Case Of Shagun Foundry Private Limited Vs. Cit ,Ita No. .87 Of 20061 'The Same Be Allowed. 2. Because The Cit(A)/Nfac Has Failed To Appreciate That The Amount Of Rs.1,63,230/- Being Esic & Epf, Being A Business Expenditure Incurred For The Purpose Of Business Having Been 'Paid Before The Filing Of The Return Of Income, The Same Being An Allowable Business

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Shri Harish Gidwani, D.R
Section 36(1)(va)Section 43B

Progress Software Development Private Limited, Hyderabad vs. Deputy Commissioner of Income Tax, Circle-16(2), Hyderabad

In the result, appeal of the assessee is allowed in above terms

ITA 511/HYD/2021[2018-19]Status: DisposedITAT Hyderabad27 Apr 2022AY 2018-19

Bench: Shri Laliet Kumar & Shri L. P. Sahum/S. Progress Software Development Private Limited, Hyderabad. Pan Aadcp 4833A …..Appellant. Vs. Dy. Commissioner Of Income Tax, Circle 16(2), Hyderabad. …..Respondent. Appellant By : None. Respondent By : Shri Sunil Goutam,(D.R.) Date Of Hearing : 25.04.2022. Date Of Pronouncement : 27.04.2022. O R D E R Per Shri L.P. Sahu, A.M. : This Assessee’S Appeal For Asst. Year 2018-19 Arises From The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac) Delhi’S Order Dt.08.10.2021 Passed In Case No. Itba / Nfac /S/ 250/ 2021-22/1036252669(1) In Proceedings Under Section 250 Of Income Tax Act, 1961 (‘The Act’). 2. None Appeared On Behalf Of The Assessee At The Time Of Hearing Of This Appeal. However, We Proceed To Dispose Of 2 This Appeal After Hearing The Ld. Dr & Considering The Facts Available On Record. 3. Before Us, The Ld. Dr, Relied On The Orders Of Revenue Authorities & Submitted That Since The Assessee Failed To Remit The Employees Contributions Towards Pf & Esi, Within The Due Date As Prescribed Under The Respective Acts, The Revenue Authorities Disallowed The Same U/S 36(1)(Va) Of The Act. Further, He Submitted That The Amendment Made In The Act Will Not Affect The Earlier Addition Made By The Ao On This Issue.

For Appellant: NoneFor Respondent: Shri Sunil Goutam,(D.R.)
Section 139(1)Section 250Section 36Section 36(1)(va)Section 43B