2025 (12) TMI 787 - AT - Income Tax

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 ... Delay in payment of employees’ contribution to PF and ESI - contributions after the statutory due dates prescribed under the respective acts - HELD THAT:- Since admittedly the assessee has made the deposit on account of employees’ contribution to PF and ESI after the statutory time allowed under the said Acts, therefore, in view of the decision of Checkmate Services (P.) Ltd. [2022 (10) TMI 617 - SUPREME COURT (LB)] such delayed payment on account of employees’ contribution to PF and ESI was rightly disallowed by the CPC. Decided against assessee. 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.