15 April 2010
Now I guess payment of ESI and PF after due dates but before the date of filing return is allowable as deduction. Is Interest paid on Late Payment of above allowable as deduction from business income? Pls reply.
as per case law In Alom Extrusion Ltd 319 ITR 306 the Supreme Court held that the omission of the second proviso to s. 43B by the Finance Act 2003 operated retrospectively w.e.f. 1.4.1988. The Court held that the contribution payable by the employer to the P.F/Superannuation Fund or any other Fund of welfare of the employees was allowable if paid before the due date of filing the return. Consequently, the issue is covered in favour of the assessee and the deduction is allowable u/s 43B.
as per my opinion interest is also allowable u/s 37.
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