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Judgment
PER C.N. PRASAD, J.M.
This appeal is filed by the assessee against the order of the Ld. CIT(A)/NFAC dated 30.10.2025 for the A.Y. 2018-19.
The only issue in appeal of the assessee is respect of disallowance on account of employee’s contribution to PF & ESI u/s.36 (1)(va) of the Act. Ld. Counsel for the assessee at the outset submitted that the contributions were made by the assessee with delay of 1 or 2 days for the reason that 15th/16th of the month being closed / national holiday.
Ld. Counsel for the assessee also submitted that in a number of cases the Tribunal restored the issue to the file of the AO to verify the due date for deposit whether it shall be reckoned from the month in which salary disbursement was made. Reliance was placed on the following decisions :-
PCIT Vs. Pepsico India Holding Pvt. Ltd. ITA No.12.2023 dated 05.09.2023 Delhi High Court
Sentinel Consultants (P.) Ltd. v. ACIT [2023] 202 ITD 154 (Delhi- Trib.)
Sai Computers Ltd. v. Assistant Director of Income-tax, CPC [2023] 155 taxmnan.com 607 (Delhi-Trib.)
Lall Construction Company v. ACIT, CPC ITA No.4206/Del/2024
Sharad Insulations & Interiors Private Limited v. ACIT, Circle-23(1), Delhi ITA No. 2757/Del/2022
Kohinoor Televideo Private Limited v DCIT Circle 5(2)(1), Mumbai ITA No. 6325/Mum/2024
Commissioner of Income-tax v. Punjab Financial Corporation Ltd. [2007] 295 ITR 510 (Punjab & Haryana)
Commissioner of Income-tax v. High Land Produce Co. Ltd. [1976] 102 ITR 803 (Kerala)
Commissioner of Income-tax v. High land Produce Co. Ltd. [1086] 158 ITR 419 (SC)
Thus, Ld. Counsel for the assessee submitted that the issue may be restored to the file of the AO to verify the contribution Act viz-a-viz the due date and also to apply general clauses and consider the payments made on any working day which falls immediately after a closed holiday and being the due date since due date for remittance i.e. 15th was closed on account of any declared holiday.
Heard rival contentions and perused the orders of the authorities below. We restore this issue to the file of the AO to examine the contentions of the assessee and decide the issue in accordance with law and keeping in view various decisions relied on by the assessee.
In the result, the appeal of the assessee is allowed for statistical purpose.