At, Income Tax Appellate Tribunal Cuttack
By, THE HONOURABLE MR. N.S. SAINI
By, ACCOUNTANT MEMBER & THE HONOURABLE MR. PAVAN KUMAR GADALE
By, JUDICIAL MEMBER
For the Appellant: Bibekananda Mohanty, AR. For the Respondent: D.K. Pradhan, DR.
1. N.S. Saini, AM This is an appeal filed by the assessee against the order of the CIT(A)- 1, Bhubaneswar dated 10.4.2018 for the assessment year 2014-15.
2. The sole issue involved in this appeal is that the CIT(A) erred in confirming the action of the Assessing Officer disallowing employee's share of PF amounting to Rs.41,079/- u/s.36(1)(va) of the Act.
3. The brief facts of the case are that the Assessing Officer observed that the assessee has not deposited Rs. Rs.41,079/-u/s.2(24)(x) r.w.sec 36(1)(va) of the Act in respect of employee's contribution to EPF within ITA No .268/ CTK/ 2018 Asse ssment Year : 20 14- 201 5 the stipulated due date u/s.36(1)(va) of the Act and, therefore, he added the same to the income of the assessee.
4. On appeal, the CIT(A) confirmed the action of the Assessing Officer following the decision of Hon'ble Gujarat High Court in the case of CIT vs. Gujarat State Road Transport Corporation, 366 ITR 170 (Guj).
5. Before us, ld A.R. submitted that in view of the decision of Hon'ble Supreme Court in the case of Rajasthan State Beverage Corporation Ltd. (2017), 84 taxmann.com 185(SC), no disallowance of deduction for employee's contribution to PF and ESI is to be made where the amount is deposited by the assessee within the time prescribed for filing return of income u/s.139(1) of the Act.
6. Ld D.R. agreed to the submission of ld A.R. of the assessee.
7. After hearing ld D.R. and perusing the written submission filed by the assessee, we find that the assessee has deposited employee's contribution to PF of Rs.41,079/- within the due date prescribed u/s.139(1) of the Act as evident from the assessment order. We find that this issue is squarely covered by the decision of Hon'ble Supreme Court in the case of Rajasthan State Beverage Corporation Ltd., (supra), wherein, it was held as under:
"Section 43B, read with section 36(1)(va), of the Income Tax Act, 1961-Business disallowance-certain deduction to be allowed only on `actual payment (PF & ESI construction)- High Court by the impugned order held that amount claimed on payment of PF and ESI having been deposited on or before due ITA No .268/ CTK/ 2018 Asse ssment Year : 20 14- 201 5 date of filing of returns, same could not be disallowed under section 43B or under section 36(1)(va)- Whether SLP against said impugned order was to be dismissed-Held yes (para 2) in favour of assessee."
8. In the instant case, it is not in dispute that the contribution to PF was deposited by the assessee before due date of filing the return of income u/s.139(1) of the Act. Therefore, respectfully following the decision of Hon'ble Supreme Court in the c
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ase of Rajasthan State Beverage Corporation Ltd., (supra), we set aside the orders of lower authorities and delete the disallowance of employee's contribution to PF of Rs.41,079/- and allow this ground of appeal of the assessee. 9. In the result, appeal filed by the assessee is allowed.