Employer Can't Claim Benefit Of Sec 36(1)(Va) If He Fails To Deposit Employees' Contribution To PF Within Due Date: Kolkata ITAT

The Kolkata ITAT ruled that delayed deposits of employees' contribution to PF by employers make them ineligible for deduction under Section 36(1)(va) of the Income Tax Act, even if deposited before the income tax return filing deadline, as per Section 43B. The case involved an appeal where the AO disallowed deductions totaling Rs. 85,23,450 due to late deposits of PF and ESI contributions. The Tribunal differentiated between employer's and employees' contributions, allowing deduction under Section 43B for timely employer deposits but upholding disallowance under Section 36(1)(va) for late employee deposits. This decision aligns with prior Supreme Court rulings emphasizing the strict interpretation of Section 36(1)(va). Therefore, while timely employer contributions can be claimed as deductions, delayed deposits of employee contributions do not qualify, reinforcing compliance with welfare enactments' deposit timelines.