Adjudicating the matter in favour of the assessee, the Hon’ble 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. (AY. 2018-19, 2019-20)
Mohangarh Engineers and Construction Company v. DCIT, (2021) 213 TTJ 298 / 205 DTR 65 / (2022) 192 ITD 309 (Jodhpur)(Trib.) U & T Tractor Spares (P) Ltd. v. ACIT, (2021) 213 TTJ 298 / 205 DTR 65 (Jodhpur)(Trib.) Pali Urban Co-Operative Bank Ltd v. Dy. CIT (2021) 213 TTJ 298 / 205 DTR 65 (Jodhpur)(Trib.) Aroon Facilitation Management Services (P) Ltd. v. Dy. CIT (2021) 208 DTR 226 (SMC) (Delhi)(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. [S. 36(1)(va), 139(1)]