RAJ TRIMURTI INFRA PROJECTS PVT. LTD.,KOLKATA vs. I.T.O., WARD - 2(1), KOLKATA, KOLKATA
What did the Tribunal hold?
The Tribunal upheld the disallowance, relying on the Supreme Court's decision in Checkmate Services Pvt. Limited. The court held that delayed deposit of employee contributions towards PF & ESI beyond the due dates under those Acts disentitles the assessee to claim deduction.
What were the facts?
The assessee failed to deposit employee's PF and ESI contributions within the due dates prescribed by the respective Acts. The Assessing Officer made an addition of Rs. 33,88,284/- on account of these delayed deposits.
What were the issues?
Whether the assessee is eligible for deduction of employee's PF and ESI contributions when they are not deposited within the due dates stipulated by the respective Acts.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
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- Checkmate Services Pvt. Ltd. v. CIT1,392 citing143 Taxmann.com 178 · 2022 · SC · Read judgment
Income Tax Appellate Tribunal, ‘C’ BENCH, KOLKATA
Before: Shri Rajpal Yadav, Vice- & Shri Rajesh Kumar
Per Shri Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 24th November, 2022 passed for A.Y. 2018-19.
Assessment Year : 2018-2019 Raj Trimurti Infra Projects Pvt. Limited
The solitary grievance of the assessee is that the ld. CIT(Appeals) has erred in confirming the action of the ld. Assessing Officer vide which an addition of Rs.33,88,284/- was made by him. According to the information available on the record, the assessee failed to deposit P.F. and ESI contributions of the employees to the respective Act within the due date provided under P.F. and ESI Acts. The ld. Assessing Officer made the disallowance with the help of section 36(1)(va).
Against this order of the ld. Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(Appeals). The ld. 1st Appellate Authority has observed that the issue in dispute is covered by the decision of the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Limited –vs.- CIT (2022) 143 taxman.com 178 (SC) rendered on 12.10.2022. The Hon’ble Supreme Court has held that employees contributions deducted by the employer for making payment towards P.F. & ESI Act were not deposited before the due date provided under those Acts, then assessee will not be eligible to claim deduction of such amounts. The assessee failed to deposit those contributions within the due date and the ld. 1st Appellate Authority has rightly upheld the action of the ld. Assessing Officer. We do not find any merit in this appeal of the assessee, it is dismissed. Assessment Year : 2018-2019 Raj Trimurti Infra Projects Pvt. Limited 4. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on July 6, 2023.
More judgments on Section 36(1)(va)
- Vco Consulatatns and Sevices Private… vs ITO, Corporate Ward 3(3), ChennaiITA 2145/CHNY/2025[2019-20]Status: Disposed16 Oct 2026AY 2019-20
- R K Swamy Limited, Chennai vs DCIT Non Corporate Circle 10(1), ChennaiITA 504/CHNY/2026[2018-19]Status: Disposed14 Oct 2026AY 2018-19
- M/S. R.K. Swamy Ltd., Chennai vs DCIT, Ncc-10(1), ChennaiITA 2822/CHNY/2025[2020-21]Status: Disposed14 Oct 2026AY 2020-21
- Rajesh Maru, Mhow vs ITO-5(1), IndoreITA 839/IND/2025[2023-2024]Status: Disposed12 Oct 2026AY 2023-2024
- Rajesh Maru, Mhow vs ITO-5(1), IndoreITA 838/IND/2025[2022-2023]Status: Disposed12 Oct 2026AY 2022-2023
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