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

Cigniti Technologies Limited, Hyderabad vs. Deputy Commissioner of Income Tax, Circle-1(1), Hyderabad

Appeal is allowed in above terms

ITA 527/HYD/2021[2019-2020]Status: DisposedITAT Hyderabad14 Feb 2022AY 2019-2020

Bench: Shri A. Mohan Alankamony & Shri S.S. Godaraassessment Year: 2019-20 M/S. Cigniti Technologies Vs. The Deputy Commissioner Limited, Of Income Tax, Hyderabad – 500082. Circle-1(1), Hyderabad. Pan : Aabcc1969J. (Appellant) (Respondent) Assessee By: Shri P. Murali Mohan Rao. Revenue By: Shri Sunil Gowtham. Date Of Hearing: 10.02.2022 Date Of Pronouncement: 14.02.2022 O R D E R Per S. S. Godara, J.M. This Assessee’S Appeal For A.Y. 2019-20 Arises From The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre, Delhi’S Order Dated 09.11.2021 In Case No.Itba/ Nfac/S/250/2021-22/1036793544(1) Involving Proceedings U/S 250 Of The Income Tax Act, 1961 [In Short, ‘The Act’]. 2. Coming To The Sole Substantive Issue Of Esi/Pf Disallowance Of Rs.52,75,976/- Made In Both The Lower Proceedings, The Assessee’S & Revenue’S Plea(S) Before Us Are That The Same Had Been Paid Before The Due Date Of Filing Sec.139(1) Return & After The Due Date Prescribed In The Corresponding Statutes; Respectively. We Notice In This Factual Backdrop That The Legislature Has Not Only Incorporated Necessary Amendment In Sections 36(1)(Va) As Well As U/S. 43B Vide Finance Act, 2021 To This Effect But Also The Cbdt Has Issued Memorandum Of Explanation That The Same Applies W.E.F. 01-04-2021. It Is Further Not An Issue That The Foregoing Legislative Amendments Have Proposed Employers’ Contribution / Disallowance U/S.43B As Against Employee’S Contribution U/S.36(Va) Of The Act; Respectively. However, Keeping In Mind The Fact That The Same Has Been Clarified To Be Applicable Only With Prospective Effect From 01- 04-2021, We Hold That The Impugned Disallowance Is Not Sustainable In View Of All These Latest Developments. The Impugned Esi/Pf Disallowance Is Deleted Therefore.

For Appellant: Shri P. Murali Mohan RaoFor Respondent: Shri Sunil Gowtham
Section 139(1)Section 250Section 36Section 43B

Cogwheel Facility Management Pvt Ltd, New Delhi vs. DCIT CPC, Bangalore

In the result, appeal of the assessee is allowed

ITA 1838/DEL/2020[2018-19]Status: DisposedITAT Delhi14 Feb 2022AY 2018-19

Bench: Shri R.K. Pandaassessment Year: 2018-19 Cogwheel Facility Management Pvt. Vs Dcit, Ltd., J-128/1, 2Nd Floor, Cpc, Mohammadpur Village, Bangalore. Near Bhikaji Cama Place, Rk Puram, New Delhi. Pan: Aagcc1517K (Appellant) (Respondent) Assessee By : Shri Ruchesh Sinha, Advocate Revenue By : Shri Om Prakash, Sr. Dr Date Of Hearing : 03.02.2022 Date Of Pronouncement : .02.2022 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 27Th August, 2020 Of The Cit(A)-2, New Delhi, Relating To Assessment Year 2018-19. 2. The Grounds Of Appeal Raised By The Assessee Are As Under:- “1. That The Ld.Cit(A) Has Erred On Facts & In Law In Upholding The Order Of The Ao, Passed Under Section 154 Of The Income Tax Act, 1961. 2. That The Ld. Cit(A) Has Erred On Facts & In Law In Upholding The Addition Of Rs.23,55,432/- Made By Ao By Invoking The Provisions Of Section 36(1)(Va) Of The Income Tax Act, 1961 3. That The Ld. Cit(A) Has Erred On Facts & In Law In Ignoring The Well- Established Judicial Pronouncements Including That Of The Jurisdictional High Court. 4. That The Impugned Appellate Order Is Arbitrary, Illegal, Bad In Law & The Violation Of Rudimentary Principle Of Contemporary Jurisprudence. 5. That The Appellant Craves Leave To Add, Amend, Alter, Vary And/Or Withdraw Any Or All The Above Grounds Of Appeal Before Or At The Time Of Hearing Of The Appeal.”

For Appellant: Shri Ruchesh Sinha, AdvocateFor Respondent: Shri Om Prakash, Sr. DR
Section 139(1)Section 143(1)Section 154Section 2(24)(x)Section 36Section 36(1)(va)Section 43B

Sanket Food Products Private Ltd, Aurangabad vs. Income-Tax Officer, Ward - 1(3), Jalna

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

ITA 1956/PUN/2017[2012-13]Status: DisposedITAT Pune11 Feb 2022AY 2012-13

Bench: Shri S.S.Viswanethra Ravi & Shri Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.1956/Pun/2017 िनधा"रण वष" / Assessment Year : 2012-13 Sanket Food Products Private Limited, Vs. Ito, Ward 1(3), Jalna Flat No.101, Bhoomi Apartment, 1St Floor, Nutan Laxmi Chs, Plot No.9, Jvpd Scheme, Ville Parle (W), N.S. Road, No.8, Mumbai – 400056 Pan: Aaecs0131P Appellant Respondent Assessee By None Revenue By Shri S.P. Walimbe Date Of Hearing 08-02-2022 Date Of Pronouncement 11-02-2022 आदेश / Order Per Dr. Dipak P. Ripote, Am : This Appeal Is Against Commissioner Of Income Tax (Appeals)-1, Aurangabad’S Order Dated 24.03.2017 For Assessment Year 2012-13. 2. The History Of Notices By Itat Issued For Hearing In This Case Is As Under: Date Of Hearing Present / Absent 03.07.2020 Ld. Ar Present & Sought Adjournment 04.08.2020 Ld. Ar Present & Sought Adjournment 09.09.2020 None Present On Behalf Of Appellant 09.10.2020 None Present On Behalf Of Appellant 10.11.2020 None Present On Behalf Of Appellant 08.01.2021 None Present On Behalf Of Appellant 30.04.2021 None Present On Behalf Of Appellant 16.09.2021 None Present On Behalf Of Appellant 08.11.2021 None Present On Behalf Of Appellant 15.12.2021 None Present On Behalf Of Appellant 08.02.2022 None Present On Behalf Of Appellant 3. Even On 08.02.2022, No One Has Appeared On Behalf Of The Appellant. From The History Of Hearings Mentioned Above, It Can Be Seen That Sufficient Opportunity Has Already

Shri. Kishor Tarachand Patil, Nashik vs. Income-Tax Officer, Ward - 2(2), Nashik

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

ITA 1461/PUN/2018[2012-13]Status: DisposedITAT Pune11 Feb 2022AY 2012-13

Bench: Shri S.S.Viswanethra Ravi & Shri Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.1461/Pun/2018 िनधा"रण वष" / Assessment Year : 2012-13 Shri Kishor Tarachand Patil, Vs. Ito, Ward 2(2), Flat No.102, Shree Anant Villa Appt., Nashik Near Deepak Laundry, Samartha Nagar, Nashik- 422007. Pan : Ahrpp7621C Appellant Respondent Assessee By Shri Sanket Milind Joshi Revenue By Shri M. G. Jasnani Date Of Hearing 09-02-2022 Date Of Pronouncement 11-02-2022 आदेश / Order Per Dr. Dipak P. Ripote, Am : This Appeal Is Against Commissioner Of Income Tax (Appeals)-2, Nashik’S Order Dated 15.12.2016 For Assessment Year 2012-13. 2. There Is A Delay Of 570 Days In Filing The Appeal. The Appellant Filed Condonation Petition. In The Condonation Petition, The Appellant Submitted That The Appellant Had Suffered Due To Slow Down In Business Which Resulted In Huge Outstanding Of Creditors. Due To Financial Pressure, Health Of The Appellant Also Suffered. The Appellant Was Under Complete Bed Rest For More Than 5 Months Around March, 2016. The Appellant Filed Copy Of Medical Certificate. The Appellant Also Submitted That He Was Kidnapped By The Creditors. Subsequently, There Was A Criminal Case Filed Against The Appellant. The Appellant Also Filed Fir Against The Kidnappers. The Appellant Also Filed Copy Of The Fir. The Appellant Was Under Police Custody, When The Bail Petition Was Rejected By The Hon’Ble