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

ITO, Ward - 4(4), Kolkata vs. M/S. Western Conglomerate Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 2232/KOL/2017[2014-15]Status: DisposedITAT Kolkata20 Jun 2018AY 2014-15

Bench: Shri P.M. Jagtap, Am] I.T.A. No. 2232/Kol/2017 Assessment Year: 2014-15 Ito Ward 4(4)Kolkata.................................………………………………………....................Appellant P-7, Chowringhee Square, Aayakar Bhawan, 8Th Floor, Kolkata – 700 069. M/S. Western Conglomerate Ltd....................……………………………………………....Respondent 3A, Hare Street, Ashoka House, 3Rd Floor, Room No. 302, Kolkata – 700 001. [Pan: Aaact 9496 Q] Appearances By: Shri D.C. Mondal, Addl. Cit Appearing On Behalf Of The Revenue. Shri S.L. Kochar, Advocate Appearing On Behalf Of The Assessee Date Of Concluding The Hearing : May 29, 2018 Date Of Pronouncing The Order : June 20, 2018 Order This Appeal Is Preferred By The Revenue Against The Order Of Ld. Cit(A) – 2, Kolkata Dated 09.08.2017 Whereby He Deleted The Addition Of Rs. 85,87,070/- Made By The Ao On Account Of Disallowance Of Belated Payments Of Employees Contribution To Provident Fund Under Section 43B Of The Income Tax Act, 1961. 2. The Assessee In The Present Case Is A Company Which Is Engaged In The Business Of Cultivation & Manufacturing Of Tea. The Return Of Income For The Year Under Consideration Was Filed By It On 27.11.2014 Declaring A Total Income Of Rs. 36,320/-. During The Course Of Assessment Proceedings, It Was Noticed By The Ao That The Assessee Has Failed To Pay The Employees Contribution To Provident Fund Amounting To Rs. 85,87,070/- Within The Due Dates. He Accordingly Invoked The Provisions Of Section 2(24)(X) & Section 36(1)(Va) Of The Act & Made A Disallowance Of Rs. 85,87,070/-.

Section 2(24)(x)Section 36(1)(va)Section 43B