During the year, the assessee deposited employee’s contribution to ESI amounting to Rs. 5,540 after the due date under the respective Act but before the due date of filing the return of income under the Act. The AO disallowed the same and the Ld. CIT(A), on further appeal, remanded the issue back to the AO to verify the claim and allow the same in case the payment was made before the due date of filing the return of income for the year. On appeal by the Department, the action of the Ld. CIT(A) was confirmed by the Hon’ble Tribunal. (AY. 2015-16)
DCIT v. Saileela Synthetics Pvt. Ltd. (2021) 199 DTR 201 / 210 TTJ 763 (Jodhpur)(Trib.)
S. 36(1)(va) : Any sum received from employees-Where assessee deposited employee’s contribution to ESI after the due date under the respective Act but before the due date of filing the return of income under the Act, the same would not warrant any disallowance. [S. 2(24)(x), 139(1)]