2025 (12) TMI 656

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.... consideration by declaring total income of Rs. 5,71,26,160/- which has been processed by the CPC, and vide Intimation dated 26/03/2023, disallowed the late payment of Employees Contribution of ESIC and PF. Aggrieved by the Intimation dated 26/03/2023, the Assessee preferred an appeal before the CIT(A). The Ld. CIT(A) vide order dated 31/03/2025, dismissed the appeal of the Assessee by relying on the Judgment of the Hon'ble Supreme Court of India in the case of Checkmate Services Pvt. Ltd. Vs. Commissioner of Income Tax-1 dated 12/10/2022 in Civil Appeal No. 2833 of 2016. Aggrieved by the order dated 31/03/2025 dismissed the appeal of the Assessee, which has been called in question in the present Appeal. 3. The Ld. Counsel for the As....

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....h in which the salary is paid to the employee by the employer came up for adjudication in the case of Sentinel Consultants Pvt. Ltd. Vs. ACIT (supra) and the Tribunal restored the issue to the file of the AO with the following observations:- "9. We have carefully considered the rival submissions and perused the material available on record. The disallowance of employees' contribution to PF/ESIC for breach of condition under Section 36(1)(va) is in controversy. 9.1 We notice at the outset that an opportunity was given via electronic platform of the deptt. for the proposed adjustments and in the absence of 4 e-response, the adjustments were carried out the CPC-Bangluru and intimation was issued enhancing the assessed income ....

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....ction 36(1)(va) of the Act. The Hon'ble Supreme Court in the case of Checkmate Pvt. Ltd. (supra) itself explains this position in Para 32 of the Judgment. Such view also draws support from the observations made in recent judgment of the Hon'ble Supreme Court in the case of Pr.CIT vs. Khyati Realtors (P) Ltd. (2022) 141 taxmann.com 461 (SC). The alternate plea is thus without any merit. 9.3 We also take note of yet another plea made out on behalf the assessee towards methodology of calculation of default under the relevant PF/ESIC Act. The Ld. Counsel contends that the month during which the disbursement of salary is actually made would be relevant for the purposes of determination of due date of deposit under the respective statute....