ESI Expenses Allowed or Disallowed

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Vineet Kumar Sharma (Querist)
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03 September 2010 If any company has made the payment of ESI after the due date, whether it is allowable for deduction as expenses in Profit & Loss Account of the comapny under section 36.

I also want to know as in section 43, the expenses is allowable if payment is made in above example.

Please mail me any example on my mail:-
vineetksharma@rocketmail.com

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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03 September 2010 UNDER SECTION 43B OF THE INCOME TAX ACT 1961, IF ESI PAYMENTS ARE NOT MADE WITHIN THE DUE DATES AS PRESCRIBED IN THE RELEVANT ACT, EMPLOYER'S CONTRIBUTION SHOULD BE DISALLOWED.

BUT ON THE SAME TIME AS THE PAYMENT HAS BEEN DONE BEFORE THE RETURN, THIS WILL BE ALLOWED.

REFER : [2005] 92 ITD 1 (DELHI)
IN THE ITAT DELHI BENCH ‘C’
Additional Commissioner of Income-tax
v. Vestas RRB India Ltd.
IT APPEAL NO. 129 (DELHI) OF 2001
[ASSESSMENT YEAR 1997-98] MAY 28, 2004