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

DCIT Corporate Circle 3(1), Chennai vs. Talentpro India Hr. Pvt. Ltd., Chennai

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

ITA 265/CHNY/2019[2014-15]Status: DisposedITAT Chennai09 Apr 2021AY 2014-15

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A. No. 265/Chny/2019 िनधा"रण वष"/Assessment Year:2014-15 The Deputy Commissioner Of M/S. Talentpro India Hr Pvt. Ltd., New No. 64, Old No. 30, 3Rd Floor, Income Tax, Vs. Corporate Circle 3(1), Ethiraj Salai, Egmore, Chennai 34. Chennai 600 008. [Pan:Aabcp9823A] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri G. Johnson, Addl. Cit ""थ" की ओर से/Respondent By : Shri M. Sanjeev Aditya, C.A. सुनवाई की तारीख/ Date Of Hearing : 15.03.2021 घोषणा की तारीख /Date Of Pronouncement : 09.04.2021 आदेश /O R D E R Per Duvvuru Rl Reddy: This Appeal Filed By The Revenue Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 7, Chennai Dated 25.10.2018 Relevant To The Assessment Year 2014-15. The Effective Ground Raised By The Revenue Is That The Ld. Cit(A) Has Erred In Deleting The Addition Made Towards Belated Remittance Of Employees’ Contribution Of Pf & Esi, Which Was Disallowed Under Section 36(1)(Va) Of The Income Tax Act, 1961. 2. Brief Facts Of The Case Are That The Assessee Has Filed Its Return Of Income For The Assessment Year 2014-15 On 26.09.2014 Admitting Total

For Appellant: Shri G. Johnson, Addl. CITFor Respondent: Shri M. Sanjeev Aditya, C.A
Section 139(1)Section 143(3)Section 147Section 148Section 2(24)(x)Section 36(1)(va)Section 43B

DCIT, New Delhi vs. M/S. C.S. Datamation Research Services Pvt. Ltd., New Delhi

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

ITA 2506/DEL/2017[2010-11]Status: DisposedITAT Delhi08 Apr 2021AY 2010-11

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2010-11 Dcit, Vs C.S. Datamation Research Services Circle-6(2), Pvt. Ltd., New Delhi. B-12, Swasthya Vihar, New Delhi. Pan: Aaccc6969K (Appellant) (Respondent) Assessee By : Shri Abhimanyu Jhamba, Advocate Revenue By : Shri Jagdish Singh, Sr. Dr Date Of Hearing : 23.03.2021 Date Of Pronouncement : 08.04.2021 Order Per R.K. Panda, Am: This Appeal Filed By The Revenue Is Directed Against The Order Dated 30Th December, 2016 Of The Cit(A)-2, New Delhi, Relating To Assessment Year 2010-11. 2. Facts Of The Case, In Brief, Are That The Assessee Is A Company Engaged In The Business Of Providing Manpower Supply, Data Entry Services & Market Research, Etc. It Filed Its Return Of Income On 31St March, 2011 Declaring Total Income At Rs.27,60,390/-. The Case Was Selected For Scrutiny. However, A Perusal Of The Assessment Order Shows That On Seven Occasions There Was Non-Attendance From The Side Of The Assessee Starting From The Date 08.09.2011 To 15.02.2013. Subsequently, Towards The Fag End Of The Assessment Proceedings, The Assessee Filed Certain Details, But, Neither The Books Of Account Were Produced Nor Full Details Were Filed Before The Ao To Verify The Genuineness Of The Claims Made In The P&L Account & The Correctness Of The Income As Computed By The Assessee Remained Unsubstantiated. The Ao, Therefore, Rejected The Book Results & Determined The Profit At Rs.2,22,81,308/- By Estimating The Profit At 15% Of The Gross Receipt At Rs.14,85,42,058/-.

For Appellant: Shri Abhimanyu Jhamba, AdvocateFor Respondent: Shri Jagdish Singh, Sr. DR