Benefit of Sec 36(1)(Va) of Income Tax Act is not Claimable on Failure to Deposit Employees’

The Income Tax Appellate Tribunal (ITAT) held that employers cannot claim the benefit of Section 36(1)(va) of the Income Tax Act if they fail to deposit employees' contributions to Provident Fund (PF) within the due date. The case involved M/s Bharathi Constructions, which deposited employees’ PF contributions after the stipulated time, leading to the disallowance of the claim under Section 36(1)(va). \r

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The ITAT upheld the disallowance, stating that the provision mandates strict adherence to the due date for deposit. The tribunal emphasized that any delay in depositing employees’ contributions to PF violates the terms of Section 36(1)(va), which aims to ensure timely deposit and safeguard employees' interests.