Gujarat High Court on 11 February, 2020 held that if Employees contribution to PF account as well as ESI contribution deposited timely as per section 36(1)(va) then only the deduction is allowable. Kindly note that law as propounded by case laws is different in different States. Kindly further note that this is relating to Employee contribution not employer contribution. PCIT vs M/S Suzlon Energy Ltd.
Supreme court on 24th April, 2020 held that clause (f) in Section 43B of the 1961 Act is constitutionally valid and therefore any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee is allowable only on actual payment. Division Bench of High Court at Calcutta order is reversed.