Tribunal held that the employee’s contributions to the PF, ESI, etc. made within the due date of filing the return u/s.139(1) shall be allowable as deduction u/s. 36(1)(va) of the Act. Further, it also held that the lower authorities are bound by the decision of the jurisdictional High Court even in case where other High Courts have taken divergent views. Further, considering the divergent view taken by Gujarat High Court, the ld CIT(A) ought to have considered and followed the decision of the jurisdictional Rajasthan High Court, as the same is binding on all the appellate authorities as well as the Assessing officer under its jurisdiction in the State of Rajasthan.(AY 2018-19, 2019-20)
K.P. Airtech v. DCIT, (2021) 213 TTJ 54 (UO) (Jaipur)(Trib.)
S. 43B : Deductions on actual payment-Any sum received from employees-Addition unsustainable where employee’s contribution to ESI is deposited after due date of the fund but before the due date of filing return of income u/s.139(1) of the Act-Precedent-Lower Authorities are bound by the decision of Jurisdictional High Court. [S. 36(1) (va),139(1), 143(1)(a), 154]