INTRODUCTION
1.1 Legislations such as The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, The Employees’ Provident Funds Scheme, 1952 [EPF Act], The Employees’ State Insurance Act, 1948 [ESI Act], The Employees’ State Insurance (Central) Regulations, 1950, etc. require an employer to contribute certain sums to the Fund [PF or ESI] created in accordance with such legislations. The contribution to be made under these legislations consists of two parts – (i) the employer’s contribution and (ii) the employee’s contribution which is deducted from the wages payable to the employee.
1.2 With respect to the employer’s contribution, section 36(1)(iv) of the Act grants a deduction in respect of any sum paid by the assessee as an employer by way of contribution towards a recognized provident fund or an approved superannuation fund. This provision has been part of the Act from the beginning.
1.3 The Finance Act, 1983 w.e.f. 1st April, 1984 introduced section 43B to provide that certain deductions are allowed only on actual payment. In short, it provides that the items covered under this section cannot be claimed as a deduction on an accrual basis. This provision contains a
non- obstante clause and accordingly overrides other provisions of the Act. This section was amended from time to time to expand the scope thereof and also for various other reasons. Presently, section 43B
