2023 (9) TMI 908

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....ds inter-alia that :- "1. On the facts, and in circumstances of the case, and in law, the Learned Assessing Officer has erred in making addition of Rs. 20,47,733, being disallowance of contribution towards Employees State Insurance (ESIC) u/s 36(1)(va) of Income Tax Act, 1961 without appreciating that the dues were paid in time without any delay and that there was an error in the tax audit report which was rectified later. 2. On the facts, and in circumstances of the case, and in law, the Learned CIT (A) has erred in disregarding and not considering the submission made by the Appellant nor granting a hearing before passing the Appellate order." 2. Briefly stated facts necessary for consideration and adjudication of the issues at hand a....

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.... the due date prescribed under the relevant Act. It is also not in dispute that as per law laid down by the Hon'ble Supreme Court in case of Checkmate Services Pvt. Ltd. vs. CIT order dated 12.10.2022 when the assessee being the employer has deposited the employees' contribution of PF & ESIC beyond the due date prescribed under the relevant Act the same is not allowable deduction under section 36(1)(va) of the Act. 6. In the backdrop of the aforesaid undisputed facts the Ld. A.R. for the assessee challenging the impugned order passed by the Ld. CIT(A) contended that all the payments by the assessee company on account of employees' contribution of PF & ESIC have been made within the period prescribed under the relevant Act, but on account o....

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....Due date for payment The actual amount paid The actual date of payment to the concerned authorities 1 Provident Fund 785061 15/05/2017 785061 10/05/2017 2 Provident Fund 805329 15/06/2017 805326 14/06/2017 3 Provident Fund 801737 15/07/2017 801737 07/07/2017 4 Provident Fund 816631 15/08/2017 816629 14/08/2017 5 Provident Fund 850169 15/09/2017 850169 11/09/2017 6 Provident Fund 907713 15/10/2017 902991 13/10/2017 7 Provident Fund 1004567 15/11/2017 992979 14/11/2017 8 Provident Fund 1072055 15/12/2017 1061775 14/12/2017 9 Provident Fund 1075843 15/01/2018 1067764 12/01/2018 10 Provident Fund 1136995 15/02/2018 1128828 14/02/2018 11 Provident Fund 1178418 15/03/2019 1219559 ....

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....f the considered view that in the totality of the facts and circumstances of the case when the deduction otherwise available to the assessee on account of deposit of employees' contribution of ESIC the same is liable to be allowed as there is no estoppel against the statute. In these circumstances, we partly set aside the impugned order passed by the Ld. CIT(A) to the extent of amount of Rs. 19,09,265/- deposited by the assessee on account of employees' contribution of ESIC well before the due date prescribed under the relevant Act being not sustainable in the eyes of law. The remaining amount of Rs. 1,96,438/- has been rightly disallowed by the AO/Ld. CIT(A) on account of late deposit of employees' contribution of PF beyond the due date pr....