M/S DATA PATTERNS INDIA LTD,CHENNAI vs. ADIT, CPC, BANGALORE

This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), New Delhi, dated 29.10.2022 and pertains to assessment year 2019-20.

The brief facts of the case are that, the appellant is a private limited company and engaged in the business of :-2-: ITA. No: 1115/Chny/2022 design, development and manufacture of on board testing equipments for the Defence, Space Department and Government controlled companies. The assessee had filed its return of income for the assessment year 2019-20 on 27.01.2020, admitting total income of Rs. 7,51,49,470/-. The return of income filed by the assessee has been processed u/s. 143(1) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) and determined total income of Rs. 8,87,32,230/-, by making additions towards disallowance of employees contribution to PF and ESI amounting to Rs. 9,78,885/- u/s. 36(1)(va) of the Act and also disallowance of deduction u/s. 80JJAA of the Act for Rs. 66,42,971/-. The assessee carried the matter in appeal before the CIT(A), but could not succeed. The ld. CIT(A), for the reasons stated in their appellate order dated 29.10.2022, dismissed appeal filed by the assessee and sustained additions made by the Assessing Officer towards disallowance of employees contribution to PF & ESI u/s. 36(1)(va) of the Act. Aggrieved by the CIT(A) order, the assessee is in appeal before us.

None appeared for the assessee. We have heard the ld. DR and perused relevant materials on record. We find that the :-3-: ITA. No: 1115/Chny/2022 issue involved in present appeal with regard to the disallowance of employees contribution to PF & ESI u/s. 36(1)(va) r.w.s. 43B of the Act is covered against the assessee by the decision of the Hon’ble Supreme Court in the case of Checkmate Service Pvt Ltd vs CIT [2022] 143 Taxmann.com 178 (SC), where it has been held that belated payment of employees contribution to PF & ESI cannot be allowed as deduction u/s. 36(1)(va) r.w.s. 43B of the Act. Therefore, by following the decision of Hon’ble Supreme Court in the case of Checkmate Service Pvt Ltd vs CIT (Supra), we are inclined to uphold the findings of the Ld. CIT(A) and dismiss appeal filed by the assessee.