S.36(1) (va): Deductions-Any sum received from employees--Deduction only on actual payment-Employee’s
Contribution - Provident fund and ESI contributions made before filing return held allowable. (S.43B )
The Court held that the deletion of the second proviso to section 43B which specifically made a reference to section 36(1) (va) was curative in nature and, hence, would apply with retrospective effect from April 1, 1988. The second proviso to section 43B(b) specifically referred to the due date under section 36(1) (va) of the Act and as such, it cannot be urged that the provisions of section 43B and section 36(1) (va) should not be read together. The law was enacted to ensure that the payment of the contributions towards the provident funds, the ESI funds or other such welfare schemes must be made before furnishing the return of income under sub-section (1) of section 139. On a conjoint reading of section 36(1) (va) and section 43B it is obvious that earlier section 43B made reference to the due date as prescribed under section 36(1) (va). There was a conflict between the first and the second provisos and the second proviso was deleted. The benefit of this amendment must be extended to the employees' contribution also. Appeal of revenue wasdismissed.(A.Y.2001-2002).
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