Law:

Section:

Section 43B of the Income-tax Act, 1961 - Business disallowance - Certain deductions to be allowed only on actual payment - Assessment year 2004-05 - Whether payment made by employer towards provident fund contribution and ESI contribution beyond stipulated period under Provident Fund Act and Employees' State Insurance Act is an allowable deduction in view of section 43B - Held, yes Section 36(1)(va), read with sections 2(24)(x) and 43B, of the Income-tax Act, 1961 - Employee's contributions - Assessment year 2004-05 - Whether deposit made by employer of employee's contribution towards provident fund and ESI contribution beyond stipulated period provided under Act and under Provident Fund Act and Employees' State Insurance Act can be treated as income of employer under section 36(1)(va), read with section 2(24)(x), in view of section 43B - Held, no CASE REVIEW CIT v. Sabari Enterprises [2008] 298 ITR 141 (Kar.) followed. CASE REFERRED TO CIT v. Sabari Enterprises [2008] 298 ITR 141 (Kar.) [Para 3]. K.V. Aravind for the Appellant. M.V. Seshachala for the Respondent. JUDGMENT D.V. Shylendra Kumar, J. - Appeal by the revenue under section 260A of the Act. Questions of law raised in this appeal are as under:- "(1)Whether the Appellate Authorities were correct in holding that the contribution made towards provident fund by the employer belatedly and contribution towards ESI contribution i.e., beyond the stipulated period provided under the Provident Fund Act, is an allowable deduction in view of section 43B of the Act ? (2)Whether the Appellate Authorities were correct in holding that the deposit made by the employer of the employee's contribution belatedly and contribution towards ESI contribution…

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