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Today my CA has added back employees contribution of esi and pf to net profit
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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if u have paid within the due dates it's a deductible expense covered under INCOME FROM BUSINESS AND PROFESSION.
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
employees contribution will not be allowed if paid after due date.
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
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
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
but in case of CIT vs. Alom Extrusions ltd., SC has decided the matter in favour of the the assessee
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