Kolkata ITAT Order: Delayed EPF Contributions Not Claimable Under Section 36(1)(Va)

The Kolkata ITAT ruled that delayed deposit of employees’ PF contributions renders the deduction under Section 36(1)(va) of the Income Tax Act ineligible. Section 36(1)(va) requires PF contributions to be deposited in the welfare account within the statutory deadline; failing this, the amount is considered business income. The ITAT Bench of Sanjay Garg and Sanjay Awasthi upheld that a deduction under Section 36(1)(va) cannot be claimed if contributions are deposited late, even if paid before the return filing deadline, citing the Supreme Court’s decision in Checkmate Services Pvt. Ltd. Vs. CIT [(2022) 143 taxmann.com 178].