MYUNGHWA AUTOMOTIVE INDIA PRIVATE LIMITED,KANCHIPURAM vs. ACIT,CORPORATE CIRCLE-4(1), CHENNAI

In this appeal for Assessment Year (AY) 2017-18, the sole grievance of the assessee is confirmation of disallowance of Employees’ Contribution to PF / ESI in terms of Sec.43B r.w.s. 36(1)(va) as well as Sec. 2(24)(x). This issue was hitherto being decided by us in assessee’s favor, inter-alia, by relying upon the decision of Hon’ble High Court of Madras in CIT v. Industrial Security & Intelligence India (P.) Ltd. (TCA No. 585 of 2015, dated 24-7-2015). However, now this issue has been decided by Hon’ble Supreme Court in favor of revenue in its recent decision in bunch of appeals titled as Checkmate Services P. Ltd. Vs CIT (Civil Appeal No.2833 of 2016 dated 12.10.2022). It is admitted position that this decision applies to the facts of case before us. In the above background, the appeal is disposed-off as under.

The assessee’s return was scrutinized u/s 143(3) on 16.12.2019. The Ld. AO made disallowance u/s 36(1)(va) for Rs.8.55 Lacs since the employees’ contribution to various welfare funds like ESI & PF were remitted beyond due dates as prescribed in respective acts. The Ld. CIT(A) relied on the amendment made by Finance Act, 2021 to confirm the disallowance. Aggrieved, the assessee is in further appeal before us. 3. Respectfully following the binding decision of Hon’ble Supreme Court as cited above, the stand of Ld. CIT(A) stand confirmed. The appeal stands dismissed.