Employees' PF and ESI contribution disallowance remanded for fresh review of the statutory due-date computation.

Disallowance of employees' contribution to provident fund and ESI for alleged delayed remittance was restored for fresh examination because the assessee specifically disputed the computation of the statutory due date under section 36(1)(va). Although delayed employee contributions are generally governed by the Supreme Court's ruling in Checkmate Services, the assessee contended that the due date should be measured from actual salary disbursement rather than the date salary became due. The issue was therefore remanded to the Assessing Officer for de novo adjudication after considering the cited precedents and giving the assessee a proper hearing.

---

---

Issues: Whether the disallowance of employees' contribution to provident fund and employees' state insurance for alleged delay in remittance required fresh adjudication on the assessee's plea regarding the computation of the due date under section 36(1)(va).

Analysis: The issue arose from disallowance made under Explanation 1 to section 36(1)(va) read with section 2(24)(x). Although the legality of delayed payment of employees' contribution was generally governed by the Supreme Court's ruling in Checkmate Services, the assessee raised a specific contention that the relevant due date should be reckoned from the actual disbursement of salary and not from the date salary became due. Considering this plea and the need to examine the matter in the light of cited precedents, the issue was restored for fresh consideration by the Assessing Officer.

Conclusion: The disallowance was not finally affirmed or deleted on merits; the matter was remanded to the Assessing Officer for de novo adjudication after giving the assessee a proper opportunity of hearing.

---