Delhi High Court Allowed Deduction As Due Fell On National Holiday, EPF Contribution Paid Next Day After National Holiday

The Delhi High Court in the case PCIT Versus Pepsico India Holding Pvt. Ltd. observed and has allowed the deduction for the contribution of employees towards the provident fund as the due date fell on a national holiday.

The bench comprising of Justice Rajiv Shakdher and Justice Girish Kathpalia in the case observed and has stated that since the due date fell on a date that was a national holiday, thus, the deposit could have been made by the respondent or assessee only on the date that followed the national holiday.

It has been submitted by the respondent or assessee that the deposit of the contribution of employee towards the provident fund was made on August 16, 2018, following a national holiday, i.e., August 15, 2018. Thus, the claimed would have to be allowed, as steps had been taken by the respondent or assessee towards the deposit of the amount on 14.08.2018.

The Assessing Officer, AO allowed the said deduction as the date was 15.08.2018. Therefore, the assessee filed an appeal before the tribunal.
The tribunal in the case observed and has held that even if employees’ contributions concerning the provident fund and towards insurance were deposited beyond the date prescribed under the subject statute, as the same would be allowable as a deduction to the employer or assessee.

It has also been contended by the department that the respondent or assessee had deposited the employee’s contribution towards the provident fund amounting to Rs. 1,56,12,404/- on 16.08.2018.

The court observed that the Assessing Officer, AO in the case had rightly disallowed the deduction, as the due date was 15.08.2018. The court while considering the facts and circumstances of the case held that the contribution to the Employee’s Provident Fund is allowable as deposited immediately after a national holiday. Accordingly, the court dismissed the appeal of the department.

The counsel, Advocate, Puneet Rai appeared for the petitioner.
The counsel, Advocate, Deepak Chopra represented the respondent.