Delhi HC allows deduction of EPF paid on a day after the national

Delhi HC allows deduction of EPF paid on a day after the national holiday

PCIT Versus Pepsico India Holding Pvt. Ltd. (ITA 12/2023)

Facts:

1. The respondent/assessee submitted that the deposit of the employee’s contribution towards the provident fund was made on August 16, 2018, following a national holiday, i.e., August 15, 2018.

2. The deduction claimed would have to be allowed, as steps had been taken by the respondent/assessee towards the deposit of the amount on August 14, 2018.

3. The Assessing Officer (AO) disallowed the deduction, as the due date was August 15, 2018.

4. The assessee filed the appeal before the tribunal. The tribunal held that even if employees’ contributions concerning the provident fund and towards insurance were deposited beyond the date prescribed under the subject statute, it would be allowable as a deduction to the employer or assessee.

       Hon Delhi HC held as below:

1. Since the due date fell on a date that was a national holiday, the deposit could have been made by the respondent or assessee only on the date that followed the national holiday.

2. Sec 10 of the General Clauses Act would also help the assessee to tide over the objections raised by the revenue.

3. The contribution to the Employee’s Provident Fund is allowable as deposited immediately after a national holiday.

The copy of the order is as under:

pepsico-india-holding-pvt-ltd-495853