Delayed PF and ESIC contribution disallowance remanded for verification of the statutory due date before final adjustment.

Delayed deposit of PF and ESIC contributions beyond the statutory due date remained a live issue, with the analysis noting that the point was covered against the assessee by Supreme Court authority. However, the relevant due date for the PF remittances had to be verified before any disallowance could be sustained. The matter was therefore remanded for verification of the due date under the PF Act, with a reasonable opportunity of hearing to the assessee. The disallowance was not finally upheld and the Assessing Officer was directed to examine the issue afresh on verification.

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Issues: Whether the disallowance made on account of delayed deposit of PF/ESIC contributions beyond the due date was sustainable, and whether the due date required verification before making the disallowance.

Analysis: The issue was noted to be covered by the decision of the Supreme Court against the assessee. At the same time, the due date for the relevant PF remittances was required to be verified before the disallowance could be sustained. The matter was therefore sent back for verification of the due date under the PF Act after giving the assessee a reasonable opportunity of being heard.

Conclusion: The disallowance was not finally affirmed at this stage and the Assessing Officer was directed to verify the due date and decide the issue afresh.

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