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

Dalmia Dsp Limited (Formerly Known As Kalyanpur Cements Limited), Kolkata vs. DCIT, Circle - 5(1), Kolkata

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

ITA 54/KOL/2019[2010-11]Status: DisposedITAT Kolkata28 Jan 2025AY 2010-11

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmai.T.A. No.54/Kol/2019 Assessment Year: 2010-11 Dalmia Dsp Ltd………………..………........………………....Appellant 2&3, Lic Building, Dr. Rajendra Prasad Sarani, (Clive Row), Kolkata-1. [Pan: Aabck1273H] Vs. Dcit, Circle-5(1), Kolkata…….……….…............................…..…..... Respondent Appearances By: Shri Navin Verma, Fca, Appeared On Behalf Of The Appellant. Shri Subhendu Datta, Cit- Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 11, 2024 Date Of Pronouncing The Order : January 28, 2024 आदेश / Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 13.11.2018 Of The Commissioner Of Income Tax (Appeals)-2, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Pertaining To Assessment Year 2010-11. 2. Brief Facts Of The Case Are That The Assessee Company Filed Its Return Of Income On 25.09.2010 By Declaring A Total Loss Of Rs.63,97,05,090/-. The Return Was Processed U/S 143(1) Of The Act. Subseqeuntly, The Case Of The Assessee Was Selected For Scrutiny & A Notice U/S 143(2) Of The Act Was Issued & Assessment Order Was Passed U/S 143(3) Of The Act On 24.01.2013 Determining A Total Loss Of Rs.60,17,78,201/-. Later On, The Case Was Reviewed U/S 263 Of The Act Considering The Assessment Order Dated 24.01.2013 As It Was Found Erroneous & Prejudicial To The Interest Of Revenue As Per Order Dated 30.03.2015 U/S 263 Of The Act Setting Aside The File To The Assessing

Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 250Section 263Section 43B