Dismissing the Department’s appeal, the Tribunal held that the payment or contribution made to the provident fund authority any time before the due date of filing of the return for the year in which the liability to pay accrued was an allowable expenditure. Admittedly, the employees’ contribution to the provident fund was deposited by the assessee before the due date of filing of return. There was no any error or illegality in the order of the CIT(A). ( AY.2002-03, 2003-04)
DCIT v. Rajasthan Rajya Vidyut Utpadan Nigam Ltd.(2018) 63 ITR685 / 52 CCH 520 (Jaipur)(Trib.)
S. 43B : Certain deductions only on actual payment – Contributions to provident fund and employees’ state insurance – Contribution deposited beyond prescribed time limit provided in respective Acts but before due date of filing return under income tax Act is allowable.