M/S STAR ELECTRICALS,SONEBHADRA vs. DCIT, RANGE - 1, VARANASI

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ITA 8/VNS/2023Status: DisposedITAT Varanasi29 September 2023AY 2018-20192 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the disallowance of employee's contribution to PF/ESI is justified if not paid within the prescribed due date, following the Supreme Court's decision in the Checkmate Services Pvt. Ltd. case.

What were the facts?

The assessee's appeal concerns the assessment year 2018-19. The issue revolves around the disallowance of employee's contribution to PF/ESI which was not paid within the statutory due date.

What were the issues?

Whether employee's contribution to PF/ESI paid after the due date prescribed under the respective statute is allowable as a deduction.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CIRCUIT BENCH : VARANASI

Before: SHRI B.R. BASKARAN & SHRI AMIT SHUKLA

For Respondent: Shri A.K. Singh, Sr. DR
Hearing: 27.09.2023Pronounced: 29.09.2023

ORDER

PER B.R. BASKARAN, AM:

1.

The assessee has filed this appeal challenging the order dated 28.12.2022 passed by Ld CIT(A), NFAC, Delhi, and it relates to the assessment year 2018-19.

2.

We heard the parties and perused the record. We notice that this issue has been decided against the assessee by the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. Vs. CIT in Civil Appeal No.2833 of 2016 wherein the Hon’ble Supreme Court held that the payment of employee’s contribution to PF/ESI shall not be liable to be allowed as deduction if the same has not been paid within the due date prescribed in the respective statute. We notice that the ld.CIT(A) has followed the above-said decision in confirming the disallowance made by the AO. Since the employee’s contribution to PF and ESI has not been paid within the due date prescribed under the respective Act, we are of the view that the ld.CIT(A) has rightly confirmed the disallowance by following the decision of the Hon’ble Supreme Court referred to above. Accordingly, we do not find any merit in the appeal filed by the assessee.

3.

In the result, the appeal filed by the assessee is dismissed.

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