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

Talentpro India Hr Private Limited, Chennai vs. DCIT, Corporate Circle 3(1), Chennai

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

ITA 2722/CHNY/2024[2019-20]Status: DisposedITAT Chennai25 Mar 2025AY 2019-20

Bench: Shri Aby T. Varkey & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. Nos.2721 & 2722/Chny/2024 िनधा"रण वष"/Assessment Years: 2018-19 & 2019-20 Talentpro India Hr Private Limited, Vs. The Deputy Commissioner Of No. 30, Ethiraj Salai, Egmore, Income Tax, Chennai 600 008. Corporate Circle 3(1), Chennai. [Pan:Aabcp9823A] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से/ Appellant By : Shri Sanjeev Aditya, C.A. (Virtual) ""थ" की ओर से /Respondent By : Shri R. Clement Ramesh Kumar, Cit & Ms. R. Anita, Addl. Cit सुनवाईकीतारीख/Date Of Hearing : 13.02.2025 घोषणाकीतारीख /Date Of Pronouncement : 25.03.2025 आदेश / O R D E R Per S.R. Raghunathaboth The Appeals Filed By The Assessee Are Directed Against Different But Identical Orders Of The Addl/Jcit(A), Thiruvanantpuram Both Dated 28.08.2024 For The Assessment Years 2018-19 & 2019-20. 2. Since Issues Raised In Both The Appeals Are Similar Based On The Same Identical Facts, With The Consent Of Both The Parties, We Proceed To Hear The Appeals Together & Pass Consolidated Order For The Sake Of Convenience.

For Appellant: Shri Sanjeev Aditya, C.A. (Virtual)For Respondent: Shri R. Clement Ramesh Kumar, CIT &
Section 143(1)Section 2(24)(x)Section 36(1)(va)

Talent Pro India Hr Private Limited, Chennai vs. DCIT, Circle 3(1), Corporate Chennai, Chennai

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

ITA 2721/CHNY/2024[2018-19]Status: DisposedITAT Chennai25 Mar 2025AY 2018-19

Bench: Shri Aby T. Varkey & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. Nos.2721 & 2722/Chny/2024 िनधा"रण वष"/Assessment Years: 2018-19 & 2019-20 Talentpro India Hr Private Limited, Vs. The Deputy Commissioner Of No. 30, Ethiraj Salai, Egmore, Income Tax, Chennai 600 008. Corporate Circle 3(1), Chennai. [Pan:Aabcp9823A] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से/ Appellant By : Shri Sanjeev Aditya, C.A. (Virtual) ""थ" की ओर से /Respondent By : Shri R. Clement Ramesh Kumar, Cit & Ms. R. Anita, Addl. Cit सुनवाईकीतारीख/Date Of Hearing : 13.02.2025 घोषणाकीतारीख /Date Of Pronouncement : 25.03.2025 आदेश / O R D E R Per S.R. Raghunathaboth The Appeals Filed By The Assessee Are Directed Against Different But Identical Orders Of The Addl/Jcit(A), Thiruvanantpuram Both Dated 28.08.2024 For The Assessment Years 2018-19 & 2019-20. 2. Since Issues Raised In Both The Appeals Are Similar Based On The Same Identical Facts, With The Consent Of Both The Parties, We Proceed To Hear The Appeals Together & Pass Consolidated Order For The Sake Of Convenience.

For Appellant: Shri Sanjeev Aditya, C.A. (Virtual)For Respondent: Shri R. Clement Ramesh Kumar, CIT &
Section 143(1)Section 2(24)(x)Section 36(1)(va)

Deputy Commissioner of Income Tax, Circle 1(1), Chandigarh vs. Glaxosmithkline Asia Pvt Ltd, Gurgaon

The appeal stand dismissed

ITA 346/CHANDI/2024[2017-18]Status: DisposedITAT Chandigarh24 Mar 2025AY 2017-18

Bench: Hon’Ble Shri Rajpal Yadav & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं. / Ita No.346/Chandi/2024 (िनधा"रणवष" / Assessment Year: 2017-18) Dcit M/S Glaxosmithkline Asia Private Ltd. 10Th Floor, Sector 43, Dlf Phase V बनाम/ Chandigarh – 160017 One Horizon Centre, Golf Course Road Vs. Gurgaon-122002. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabcs-3237-R (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri Ajay Vohra (Sr. Advocate) Along With Shri Neeraj Jain (Advocate) & Ms. Somya Jain (Ca) – Ld. Ars ""थ"कीओरसे/Respondent By : Shri Rohit Sharma (Cit) – Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 05-03-2025 घोषणाकीतारीख /Date Of Pronouncement : 24-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Revenue For Assessment Year (Ay) 2017-18 Arises Out Of An Order Of Learned Addl. / Joint Commissioner Of Income Tax (Appeals)-2, Coimbatore [Cit(A)] Dated 09-02-2024 In The Matter Of An Order Passed By Ld. Ao On 13-09-2023. Having Heard Rival Submissions & Upon Perusal Of Case Records, The Appeal Is Disposed- Off As Under.

For Appellant: Shri Ajay Vohra (Sr. Advocate) along with ShriFor Respondent: Shri Rohit Sharma (CIT) – Ld. DR
Section 143(1)Section 43B

Airona Tiles Limited, Sabarkantha vs. The DCIT, Circle Himatnagar Presently the DCIT, Circle-2(1)(1), Ahmedabad

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

ITA 1127/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad20 Mar 2025AY 2016-17

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.1127/Ahd/2023 िनधा"रण वष" /Assessment Year : 2016-17 Airona Tiles Limited The Dcit बनाम/ Ceramic City Circle Himatnagar. V/S. At & Post : Dalpur Presently The Dcit, Kathwada Road Circle-2(1)(1) Sabarkantha – 383 120 (Gujarat) "थायी लेखा सं./Pan: Aanca 3712 D (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee By : Shri Anil N. Shah & Aatish Shah Ars Revenue By : Shri Purshottam Kumar, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 19 /03/2025 घोषणा की तारीख /Date Of Pronouncement: 20 /03/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: This Appeal Has Been Preferred By The Assessee Against The Order Dated 13.10.2022 Passed By The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre, (Nfac), Delhi [Hereinafter Referred To As “Cit(A)”], Arising Out Of The Assessment Order Dated 21.12.2018 Passed Under Section 143(3) Of The Income Tax Act, 1961 [Hereinafter Referred To As “The Act”] By Dcit/Acit, Circle Himatnagar [Hereinafter Referred To As “Ao”] For The Assessment Year (Ay) 2016-17. Airona Tiles Ltd. Vs. The Dcit, Circle Himatnagar - Presently The Dcit, Circle-2(1)(1) Asst. Year : 2016-17

For Appellant: Shri Anil N. Shah &For Respondent: Shri Purshottam Kumar, Sr.DR
Section 143(1)Section 143(2)Section 143(3)Section 36(1)(va)Section 40A(3)Section 43BSection 68