Tribunal Partially Allows Appeal on Delayed Employee Contributions to PF and ESI; Case Remanded for Re-Adjudication.

The Tribunal partially allowed the appeal concerning delayed payments of employees' contributions to PF and ESI for the assessment year 2018-19. It upheld the Supreme Court's ruling that such delayed payments are not allowable under section 36(1)(va) of the Income Tax Act and section 43B does not apply. The Tribunal remanded the issue to the Assessing Officer for re-adjudication, allowing the assessee to argue the allowability of these contributions under other provisions. The appeal was allowed for statistical purposes, pending further consideration by the Assessing Officer.

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Issues: Delayed payment of PF and ESI in respect of employees' contribution.

Analysis:
1. The appeal was filed against the order of the CIT(A) for the assessment year 2018-19 regarding the delayed payment of PF and ESI in respect of employees' contribution.
2. The issue involved was whether the delayed payment of employees' contribution to PF and ESI is allowable under section 43B of the Income Tax Act.
3. The Senior DR argued that the Hon'ble Supreme Court in the case of Checkmate Services Pvt Ltd vs CIT has held that if the employees' contribution to PF and ESI is paid beyond the prescribed time, it is not allowable under section 43B or section 36(1)(va) of the Act.
4. The Tribunal noted that the Supreme Court had indeed held that the delayed payment of employees' contribution to PF and ESI is not allowable under section 36(1)(va) of the Act and that section 43B does not apply to these contributions.
5. Referring to the case of Nirakar Security & Consultancy Services Pvt Ltd vs ITO, the Tribunal decided to restore the issue to the Assessing Officer for re-adjudication, granting the assessee an opportunity to present arguments on the allowability of the disallowed contributions under other relevant provisions.
6. Consequently, the appeal was partly allowed for statistical purposes, and the issue was remanded to the Assessing Officer for further consideration after providing the assessee with a fair hearing opportunity.

This detailed analysis of the judgment highlights the key arguments presented by both parties, the relevant legal provisions, and the Tribunal's decision to remand the issue for further examination in light of the Supreme Court's ruling and the arguments presented by the assessee in a similar case.

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