Section 37 of Income Tax Act, 1961— The only effective issue in this appeal is with respect to disallowance by AO of Rs. 33,32,061/- towards employee’s contribution of Provident Fund(PF) & Employees State Insurance(ESI) deducted by assessee from salaries of employees(called as employees contribution) which was deposited late beyond the due date prescribed under relevant statutes governing PF and ESI for deposit of said PF and ESI contribution, which in the opinion of Revenue has infringed provisions of Section 36(1)(va) of the 1961 Act, therefore as per Revenue said sum is liable to be assessed as income in the hands of assessee by invoking provisions of Section 2(24)(x) r.w.s. 36(1)(va) of the 1961 Act.

Held that— we decide this issue in favour of the assessee and hold that employees contribution towards PF and ESI deducted by assessee from salaries of employees which is deposited by assessee beyond the due date prescribed under relevant statutes governing PF and ESI, but deposited prior to due date of filing of return of income u/s.139(1) of the 1961 Act shall be allowed as deduction and we direct deletion of the additions made to the income of the assessee. The assessee succeeds in its appeal filed with tribunal. We order accordingly.M/S. SELVA GOLD COVERING PVT. LTD. VERSUS THE DEPUTY COMMISSIONER OF INCOME-TAX, CORPORATE CIRCLE-2, COIMBATORE.[2019] 19 ITCD Online (12) CHENNAI