The Income Tax Appellate Tribunal (ITAT), Kolkata bench, while allowing relief to Deloitte Haskins & Sells, has held thatthe contributions made after the statutory due date shall be allowable as deduction under section 36(1)(va) of the Income Tax Act, 1961.
The appellant-Company failed to make the payments of employees’ contribution to ESI and PF account within the due date provided under the PF & ESI Act. Therefore, the Assessing Officer has disallowed the claim of assessees for grant of deduction of such contributions. This disallowance was made with the aid of section 36(1)(va) read with section 2(24)(x) of the Income Tax Act.
Shri Rajpal Yadav, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member has observed that the return of the assessee was processed at CPC, Bengaluru, wherein without asking for any explanation from the assessee, the disallowance was made.
“Before the ld. CIT(Appeals), it could not submit the details. Thus in a faceless disposal of appeal, the disallowance of Rs.4,99,233/- was confirmed by the ld. 1s t appellate authority. We set aside the impugned orders in this appeal for a limited purpose to the file of ld. Assessing Officer. Ld. Assessing Officer shall verify, whether payments to ESI and PF accounts out of employees’ contribution has been made within the due date of filing of return or not. In case, it is found that payments of these contributions have been made within the due date of filing of the return, then no disallowance ought to be made. With the above observation, this appeal is to be treated as allowed for statistical purposes, whereas all other appeals are treated as allowed,” the Tribunal said.
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