Appeal dismissed; delayed PF and ESI employee contributions disallowed u/s 36(1)(va), following Checkmate Services ruling

ITAT Pune dismissed the assessee's appeal and upheld disallowance of employees' contribution to PF and ESI deposited after the statutory due dates under the respective welfare enactments. Applying the binding ratio of the SC in Checkmate Services (P.) Ltd., the Tribunal held that employees' contributions are governed strictly by the due dates specified in the PF and ESI Acts, and that subsequent payment before the due date of filing the return under the Income-tax Act does not cure the default. The disallowance made by CPC was therefore confirmed, and relief was denied to the assessee.

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Appeal concerned disallowance of Rs. 1,73,046/- under section 143(1)(a) of the Income-tax Act, 1961, for delayed payment of employees' contribution to PF and ESI in assessment year 2019-20. The assessee, a HUF engaged in hotel and land dealing business, had deposited employees' contributions after the statutory due dates prescribed under the respective welfare Acts. CPC made an adjustment in intimation under section 143(1)(a), which was upheld by the CIT(A)/NFAC. In an earlier round, the Tribunal had deleted the disallowance, but that order was recalled on a Miscellaneous Application filed by the Revenue, restoring the appeal for fresh adjudication. On recall, and with no appearance by the assessee despite multiple opportunities, the Tribunal applied the binding precedent of the Supreme Court in "Checkmate Services (P.) Ltd. vs. CIT [2022] 143 taxmann.com 178," holding that employees' contribution paid beyond the statutory due date is not allowable. The disallowance and CIT(A)/NFAC's order were upheld, and the assessee's appeal was dismissed.

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