ESI/EPF Contributions Must Be Paid by Due Date, Not Return Filing Date Under Section 139(1)

The ITAT Delhi upheld the principle from the SC in Checkmate Services Pvt Ltd that ESI/EPF contributions must be deposited by the statutory due date, not the date of filing the return under section 139(1). The assessee's primary contention failed on this ground. However, since the actual date of salary disbursement was not examined by lower authorities, the ITAT remanded the matter to the AO for fresh verification limited to this issue. The assessee bears the burden to prove compliance based on the salary disbursement date in subsequent proceedings. The appeal was allowed to this extent and sent back for reconsideration.

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The Appellate Tribunal (ITAT Delhi) heard the assessee's appeal for AY 2020-21 against the CIT(A)'s order under section 154 of the Income-tax Act, 1961. The primary issue concerned the disallowance of ESI/EPF contributions amounting to Rs. 15,57,375/-. Relying on the Supreme Court's ruling in Checkmate Services Pvt Ltd Vs. CIT [2022] 143 taxmann.com 278 (SC), the Tribunal affirmed the principle that such contributions must be deposited "on or before the due date in the corresponding statute" rather than the due date for filing the return under section 139(1). Consequently, the assessee's first ground failed. However, the Tribunal identified a lacuna in the lower authorities' adjudication regarding the actual date of salary disbursement, which could affect compliance with the statutory deadline. Therefore, the matter was remanded to the Assessing Officer for fresh factual verification limited to this aspect, with the condition that the assessee must "plead and prove at his own risk and responsibility" compliance based on the actual salary disbursement dates. The appeal was thus partly allowed for statistical purposes. The order was pronounced on 3rd June 2025.

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