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Today my CA has added back employees contribution of esi and pf to net profit

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84 Points Posted on 15 July 2019
Today my CA has added back employees contribution of esi and pf to net profit which was paid after the due date of respective law but before filing of return of income. please tell me the reason behind doing this.
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On 15 July 2019 at 20:49 Report
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28207 Points Posted on 15 July 2019
if u have paid within the due dates it's a deductible expense covered under INCOME FROM BUSINESS AND PROFESSION.
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On 15 July 2019 at 21:24
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12244 Points Posted on 16 July 2019
employees contribution has to be deposited within due date under respective law in force else it's not eligible to claim as deduction under section 43B
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On 16 July 2019 at 00:00
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266 Points Posted on 16 July 2019
employees contribution will not be allowed if paid after due date.
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On 16 July 2019 at 09:38
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84 Points Posted on 16 July 2019
why employee contribution is not allowed as deduction? as per sec 43B due date means date of filling return under income tax act since I have paid these contribution before filling of return it should be allowed as deduction
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On 16 July 2019 at 09:44
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266 Points Posted on 16 July 2019
There are two conflicting decided case laws
1. CIT v Gujrat State Road transport Corp. (2014) 366 ITR 170
2. CIT v Khichha sugar co. Ltd. (2013) 356 ITR 351

It is allowed as per cl no. 2 but disallowed as per cl no.1
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On 16 July 2019 at 09:54
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84 Points Posted on 16 July 2019
but in case of CIT vs. Alom Extrusions ltd., SC has decided the matter in favour of the the assessee
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On 16 July 2019 at 10:43


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