ITAT Grants Relief on Employer PF & ESI Contributions, Restricts Disallowance to Employee Contributions Based on Timely Payment u/s 43B of Income Tax Act

ITAT granted relief on employer PF and ESI contributions, restricting disallowance to employee contributions based on timely payment under Section 43B of the Income Tax Act. The Tribunal emphasized that if the employer's contributions are paid within the due date, they should not be disallowed. However, employee contributions must also be timely to avoid disallowance. This ruling provides clarity on the treatment of PF and ESI contributions, ensuring that employers who comply with payment deadlines are not penalized. It also reinforces the importance of timely payment of employee contributions to safeguard their benefits.