2025 (11) TMI 987

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....ee, they are disposed of by this common order for the sake of convenience and brevity. Representatives of both the sides were heard at length. Case records carefully perused. Relevant documentary evidence brought on record duly considered in light of Rule 18(6) of the ITAT Rules. 3. The sum and substance of the first grievance of the assessee in both the A.Ys under consideration is that the ld. CIT(A) erred in confirming the addition on account of delay in deposit of PF/ESIC beyond due date u/s 143(1). 4. The main argument of the ld. counsel for the assessee is that the processing has been made before the order of the Hon'ble Supreme Court in favour of the Revenue and against the assessee by the decision in the case of Checkmate S....

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....levant Act. 11. The Hon'ble Supreme Court has categorically held that the employees' contribution deposited after respective due date cannot be allowed as deduction, and, therefore, it would be incorrect to say that the decision of the Hon'ble Supreme Court is applicable only in the case of an assessment farmed u/s 143(3) of the Act. In our considered view, the ratio decidendi is equally applicable for the intimation framed u/s 143(1) of the Act. 12. Now coming to the challenge that the impugned adjustment is beyond the powers of the CPC Bengaluru u/s 143(1) of the Act is also not correct. In light of the aforementioned decision of the Hon'ble Supreme Court [supra], as mentioned elsewhere, it cannot be stat....

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....sessment order u/s. 143(3) of the Act. 8. Similarly, the ld ITAT Pune Bench in the case of Surendra Devid Thokal Vs ITO (ITAT Pune) has confirmed the CPC adjustment of Employee contributions for PF/ESI delayed payments as not deductible following the Supreme Court in Checkmate Services. The Ahmedabad Tax Tribunal in the case of M/s. Checkmate Services Pvt. Ltd. (I.T.A. No. 69/Ahd/2023) have held that the decision of the Hon'ble Supreme Court in the case of Checkmate Services Private Limited is declaration of law which is applicable to all proceedings whether it is scrutiny assessment under Section 143(3) of the IT Act or the proceeding of processing tax return under Section 143(1) of the IT Act. Following the above decision, we hold that....