Deduction u/s 43B is Allowable even in case of Delayed Payment of Employees Contribution under EPF Act: Delhi HC [Read Order]

Finance Act - Delhi High Court - taxscan

The division bench of the Delhi High Court, while granting relief to M/s MVS Engineering Ltd, held that the deduction under section 43B of the Income Tax Act can be allowed even if the Employees Contribution under the EPF Act was paid after the due date prescribed under the Act.

The appellant challenged the order of the ITAT wherein it was held that that the assessee had to deposit the employees contribution under the Employees Provident Fund and Misc. Provision Act, 1952 and the Employees State Insurance Act, 1948, each month before the due dates as prescribed under these Welfare Acts to get the benefit of deduction under Section 43B of the income Tax Act, 1961.

The division bench comprising of Justice S. Muralidhar and Justice Chander Shekhar found that that the above is a settled issue in the light of its own judgment in the case of Commissioner of Income-tax v. AIMIL Limited. Accordingly, the Court allowed the appeal and quashed the ITAT order.

Read the full text of the Order below.