Held that the distinction between an employer\u2019s contribution which is its primary liability under law. In terms of section\u00a036(1)(iv), and its liability to deposit amounts received by it or deducted by it (section\u00a036(1)(va) is, thus crucial. The former forms part of the employer\u2019s income, and the latter retains its character as an income (albeit deemed), by virtue of section\u00a02(24)(x)-unless the conditions spelt out by the Explanation to section\u00a036(1)(va)\u00a0are satisfied, i.e., depositing such amount received or deducted from the employee on or before the due date. This marked distinction has to be borne while interpreting the obligation of every assessee under section\u00a043B.The non obstante clause has to be understood in the context of the entire provision of section\u00a043B\u00a0which is to ensure timely payment before the returns are filed, of certain liabilities which are to be borne by the assessee in the form of tax, interest payment and other statutory liability. In the case of these liabilities, what constitutes the due date is defined by the statute. Nevertheless, assessees are given some leeway in that as long as deposits are made beyond the due date, but before the date of filing of the return, the deduction is allowed. That, however, cannot apply in the case of amounts which are held in trust, as in the case of employees\u2019 contributions which are deducted from their income. They are not part of the assessee-employer\u2019s income, nor are they heads of deduction per se in the form of statutory pay out. They are others\u2019 income, monies, only deemed to be income, with the object of ensuring that they are paid within the due date specified in the particular law. They have to be deposited in terms of such welfare enactments. It is upon deposit, in terms of those enactments and on or before the due dates mandated by such concerned law, that the amount which is otherwise retained, and deemed an income, is treated as a deduction. Thus, it is an essential condition for the deduction that such amounts are deposited on or before the due date. If such interpretation were to be adopted, the non obstante clause under section\u00a043B\u00a0or anything contained in that provision would not absolve the assessee of its liability to deposit the employee\u2019s contribution on or before the due date as a condition for deduction. (AY. 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 43B : Deductions on actual payment-Contributions to Employees\u2019 Welfare Funds such as Provident Fund and Employees\u2019 State Insurance-Employer in Trust-Income of assessee unless paid into fund by due date-Prescribed by enactment governing fund-Interpretation Of Taxing Statutes-Exemption or deduction,Non Obstante Clause-Deduction is available if paid before due date prescribed under respective Acts. [S. 2(24)(x), 36(1)(iv), 36(v), 139(1), Sch. IV, R. 2(C), Employees\u2019 Provident Funds and Miscellaneous Provisions Act, 1952, S. 30, Employees\u2019 State Insurance Act, 1948, Employees\u2019 Provident Funds Scheme, 1952, Cl. 30, Employees\u2019 State Insurance (Central) Regulations, 1950, Regulation, 31] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-31324","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-89e","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=31324"}],"version-history":[{"count":4,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31324\/revisions"}],"predecessor-version":[{"id":36693,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31324\/revisions\/36693"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=31324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=31324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=31324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}