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

Gouri Shankar Jain HUF, Kolkata vs. P.C.I.T-11, Kolkata

In the result, appeal of the assessee is allowed

ITA 1662/KOL/2019[2014-15]Status: DisposedITAT Kolkata25 Nov 2020AY 2014-15

Bench: Sri J. Sudhakar Reddy, Hon’Ble & Sri S.S. Godara, Hon’Ble) Assessment Year: 2014-15 M/S. Gouri Shankar Jain Huf…………….…………………................................……………….….........Appellant C/O. Agarwal Vishwanath & Associates 133/1A, S.N. Banerjee Road Pushkal Bhawan 3Rd Floor Kolkata – 700 013 [Pan : Aachg 9644 L] Vs. Principal Commissioner Of Income Tax-11, Kolkata…..………...…..................……………..Respondent Appearances By: Shri Ankit Jalan, Advocate, Appeared On Behalf Of The Assessee. Shri Ram Bilash Meena, Cit D/R, Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : October 1St, 2020 Date Of Pronouncing The Order : November 25Th, 2020 Order Per J. Sudhakar Reddy, Am :- This Appeal Filed By The Assessee Is Directed Against The Order Of The Learned Principal Commissioner Of Income Tax - 11, (Hereinafter The “Ld. Pr. Cit”), Passed U/S. 263 Of The Income Tax Act, 1961 (The ‘Act’), Dt. 15/03/2019, For The Assessment Year 2014-15. 2. There Is A Delay Of 27 (Twenty Seven) Days In Filing Of This Appeal. After Perusing The Petition For Condonation Of Delay, We Are Convinced That The Assessee Was Prevented By Sufficient Cause In Filing The Appeal In Time. Hence, We Condone The Delay & Admit This Appeal. 3. The Assessee Is A Huf & Had Filed Its Return Of Income For The Assessment Year 2014-15 On 29/11/2014, Declaring Total Income Of Rs.15,08,400/-. The Case Was Selected For Scrutiny Under Cass For The Reason That It Had Low Net Profit Or Loss Shown From Large Gross Receipts. The Assessment Was Completed U/S 143(3) Of The Act On 20/12/2016. Later, The Ld. Pr. Cit, Revised The Assessment U/S 263 Of The Act After Issuing Showcause Notice On 28/02/2019. The Reasons For Revision Are Given In Para 4 Page 2 Of The Order U/S 263 Of The Act, Passed By The Ld. Pr. Cit, Which Is Extracted For Ready Reference:-

Section 143(3)Section 263Section 43B

M/S. Honda Siel Power Products Ltd., Gautam Budh Nagar vs. ACIT, New Delhi

In the result the appeal filed by the assessee is dismissed

ITA 2299/DEL/2014[2007-08]Status: DisposedITAT Delhi23 Oct 2020AY 2007-08

Bench: Shri R.K. Panda & Shri Kuldip Singhassessment Year: 2007-08 Honda Siel Power Products Ltd., Vs Acit, Plot No.5, Sector-41 (Kasna), Circle-12(1), Greater Noida Industrial New Delhi. Development Area, Gautam Budh Nagar Pan: Aaach8464L (Appellant) (Respondent) Assessee By : Shri Neeraj Jain, Advocate Ms Shaily Gupta, Ca & Ms Mrinal Goyal, Ca Revenue By : Ms Sunit Singh, Cit-Dr Date Of Hearing : 12.10.2020 Date Of Pronouncement : 23.10.2020 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 14Th February 2014 Passed U/S 263 By The Cit, Delhi-4, Delhi, For Assessment Year 2007-08. 2. Facts Of The Case, In Brief, Are That The Assessee Is A Company Engaged In The Business Of Manufacturing Of Portable Generating Sets, Ic Engines, Water Pumping Sets & Manufacture & Processing Of Pressure Die-Casting Parts. It Filed It'S Return Of Income On 27Th October 2007 Declaring Nil Income. Subsequently, The Assessee Filed A Revised Return On 29Th October 2007 Declaring Total Income At Rs.31,49,18,923/-. The Ao Passed The Order Under Section 143(3) Read With Section 144C Of The Act On 24Th October 2011, Determining The Total Income Of The Assessee At Rs.44,78,49,680/- Wherein He Made Addition Of Rs.13,29,30,660/- Under Various Heads Such As Royalty, Technical Guidance, Expert Commission & On Account Of Tp Adjustment.

For Appellant: Shri Neeraj Jain, AdvocateFor Respondent: Ms Sunit Singh, CIT-DR
Section 143(3)Section 144CSection 234BSection 263Section 43B