The appellant in the present case failed to pay the Employees’ Contribution under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 [EPF and MP Act] and the Employees State Insurance Act, 1949 [ESI Act] before the due date as was provided under the said enactments.
The issue before the Court is whether the appellant can claim deduction under in the year 2008-09 for the employees’ contribution belatedly paid in the previous year to the assessment year.
As highlighted by the bench, the primary issue before the present Court is whether there should be a reconsideration of the decision of Mechem Ltd. Alom Extrusions Ltd. and Merchem Ltd. applied in two different fields the ratio of which stands as a principle applicable in the present issue at hand and was relied upon by the respondent.
The question which arose for consideration in Alom Extrusions Ltd. was “Whether omission (deletion) of the second proviso to Section 43B of the Income Tax Act, 1961, by the Finance Act, 2003, operated with effect from April 1, 2004, or whether it operated w.e.f. April 1, 1998. The Hon’ble Supreme Court noted that prior to Finance Act, 2003, the second proviso to Section 43B restricted the deduction in respect of any sum payable by an employer as the contribution to the provident fund for the welfare of employees unless it stood paid within the specified due date.
Employee Employees' Provident Funds and Miscellaneous Provisions Act Employees' State Insurance Act Employees’ Provident Fund Employer EPF and MP Act EPFO ESIC ESIC Data Finance Act Government India Insurance Kerala Labour Labour and Employment Labour Standards Law PF PPF Statutory Supreme Court Worker