late deposit of employee share

Querist : Anonymous (Querist) 25 February 2010 This query is : Resolved
we have deposited few ESI and PF payments after the due under the PF act. employor share is allowed u/s 43B

what about the employee share even deposited before due date of return

Follow Query

Report Abuse

Raj Kumar Makkad (Expert) 25 February 2010
Your quarry is not clear.

Vineet (Expert) 26 February 2010
The query is pretty clear. All such sums are deductble u/s 36(1)(va) of the Act only if paid by the assessee before the due date.

The provision is analogous to section 43B(b) which is in respect of employer's contribution. by deletion of second proviso of section 43B wef 1-4-2004, the payments in relation to employers contribution are allowed as deduction even after due date but before due date of filing of return. No such provision has been brought in respect of section 36(1)(va).

However, courts have taken a view that since both these provisions are analogous, the assessee's should not be placed at a disadvantageous provision and the payments in nature as described in section 36(1)(va) and 43B(b) should be allowed in the year of payment against the hard stand taken by the revenue authorities that such deductions should not be allowed at all if not paid before the due date.

Kumar Thadhani (Expert) 27 February 2010
MR VINEET IS RIGHT IN THIS QUERY.

Vineet (Expert) 22 March 2010
For your reference latest decision of Delhi High Court in the case CIT vs Aimil Ltd (2010-TIOL-125-HC-DEL-IT). Deduction allowed with retrospective effect if the contribution deposited before the due date of filing of returns holding the amendement as curative in nature.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries