Employees' provident fund and ESI contribution disallowance requires verification of the statutory due date before fresh adjudication.

Employees' contribution to provident fund and ESI deposited after the due date under the welfare statutes, even if paid before the return-filing date, is governed by the principle affirmed in Checkmate Services (P) Ltd. The relevant provident fund due date, however, must be verified before any disallowance is made. The matter was therefore remanded for fresh adjudication after such verification and after giving the assessee a reasonable opportunity of hearing; no final finding was recorded on the disallowance at that stage.

---

---

Issues: Whether the disallowance of employees' contribution towards provident fund and ESI, said to have been deposited after the due date under the respective welfare statutes but before the due date for filing the return under section 139(1), could be sustained, and whether the matter required verification of the due date for the relevant provident fund payment.

Analysis: The issue was treated as settled against the assessee by the Supreme Court decision in Checkmate Services (P) Ltd. However, the relevant due date under the provident fund law was directed to be verified before making the disallowance, and the Assessing Officer was asked to decide the matter afresh after giving the assessee reasonable opportunity of hearing.

Conclusion: The disallowance was not finally deleted or sustained at this stage, and the matter was sent back for verification and fresh decision.

---