Delayed employees' provident fund and ESI contributions are not deductible and are taxable as income under settled law.

Employees' contribution to provident fund and ESI deposited after the prescribed due date is not allowable as a deduction under section 36(1)(va) and is treated as income under section 2(24)(x). The text applies the Supreme Court ruling in Checkmate Services (P) Ltd., which authoritatively settles that delayed remittance of employees' welfare contributions defeats deduction claims even if the amounts were received during the relevant year. The disallowance is therefore sustained, and the assessment adjustment relating to late deposit of employees' contribution remains undisturbed.

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Issues: Whether employees' contribution to provident fund and ESI deposited after the prescribed due date is disallowable under section 36(1)(va) of the Income-tax Act, 1961 and treated as income under section 2(24)(x) of the Income-tax Act, 1961.

Analysis: The assessee's contribution to provident fund and ESI was received during the relevant financial year but deposited beyond the due dates under the respective welfare enactments. The issue was held to be covered by the Supreme Court decision in Checkmate Services (P) Ltd., which authoritatively held that delayed deposit of employees' contribution cannot be allowed as a deduction under section 36(1)(va) and is liable to be treated as income under section 2(24)(x).

Conclusion: The disallowance was upheld and the addition was sustained in favour of the Revenue.

Final Conclusion: The appeal failed on the sole substantive ground and the assessment adjustment relating to delayed employees' contribution remained undisturbed.

Ratio Decidendi: Employees' contribution to welfare funds deposited after the statutory due date is not allowable as a deduction and is taxable as income.

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