If employee’s contribution of PF and ESI deducted from employee’s salary is deposited before due date prescribed u/s 139(1), the deduction for same shall be allowed.

Business expenditure Deduction for sum credited to the employees’ accounts in certain funds Assessee filed return of income While completing assessment, AO made disallowance towards employee’s contribution of PF & ESI deducted by assessee from salaries of employees which was deposited late beyond due date prescribed under relevant statutes governing PF and ESI for deposit of said PF and ESI contribution, which in AO’s opinion had infringed provisions of s. 36(1)(va) CIT(A) dismissed assessee’s appeal Held, employees contribution towards PF and ESI deducted by assessee from salaries of employees which was deposited by assessee beyond due date prescribed under relevant statutes governing PF and ESI, but deposited prior to due date of filing of return of income u/s 139(1) shall be allowed as deduction Assessee’s appeal allowed.

SELVA GOLD COVERING PVT. LTD. vs. THE DEPUTY COMMISSIONER OF INCOME-TAX

(2019) 57 CCH 0302 ChenTrib