Court held that payments of employer’s contribution to provident fund and ESI made on or before due date for filing return of income under S. 139(1), has to be allowed as deduction under S. 43B of the Act. As regards employee’s contribution is concerned, assessee is entitled to get deduction of amount as provided under S. 36(1)(va) only if amounts so received from employee is credited in specified account within due date as provided under relevant statutes. ( AY.2008 -09)
Popular Vehicles & Services (P.) Ltd. CIT (2018) 406 ITR 150/ 257 Taxman 120/ 304 CTR 407/ 169 DTR 303 (Ker)(HC)
S. 36(1)(va) :Contribution approved gratuity fund -Employer’s contribution is allowable as deduction if the payment is made before due date of filing of return u/s 139(1)- Deduction in respect of employees’ contribution to ESI and EPF is available only if same is paid within due date as specified under relevant statutes.[ S. 2(24)(x), 43B , 139(1) ]