The employees’ contribution towards provident fund and employees’ State insurance were not deposited within the prescribed period under S. 36(1)(va) read with S. 2(24)(x) of the  Act . The AO disallowed the payments. The CIT (A) dismissed the appeal filed by the assessee. The Tribunal held that the question as to whether there was a delay or not was to be decided by the AO  and the assessee would get relief if found admissible. On appeal by revenue the Court held that   S.  38 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 made it obligatory for the employer before paying the wages to deduct the employees’ contribution along with the employer’s own contribution as fixed by the Government. The employer is further obliged to pay it within fifteen days of the close of every month’s pay, i.e., such contribution and administrative charges. The reference to fifteen days of the close of the month must be in relation to the month during which the payment of wages is to be made and corresponding liability to deduct the employee’s contribution to the fund arises. The expression “within fifteen days of the close of every month” therefore, must be interpreted as having reference to the close of the month, for which, the wages were required to be paid with the corresponding duty to deduct the employees’ contribution and to deposit such amount in the relevant fund. The order of the Tribunal restoring the matter to the Assessing Officer was erroneous.( AY.2011-12)