PENGG USHA MARTIN WIRES PRIVATE LIMITED,KOLKATA vs. DCIT, CIRCLE - 8(2), KOLKATA, KOLKATA

For that the appellant craves leave to supplement, cancel or otherwise modify any of the above grounds before or at the time of hearing.

The sole grievance of the assessee is that the ld. CIT(A) erred in confirming the disallowance of Rs.10,63,921/- made by the Centralized Processing Centre (CPC) for delay in deposit of employees’ contribution towards PF & ESI u/s 36(1)(va) r.w.s. 2(24)(x) of the Act.

At the outset of the ld. Counsel for the assessee submitted that the issue stands squarely covered in its favour by various decision of this Tribunal wherein it has been consistently held that if there is a delay in deposit of employees’ contribution towards PF & ESI, but the said sum is deposited before the due date of filing of the return of income u/s 139(1) of the Act, then disallowance is uncalled for. On the hand, the ld. D/R, supported the order of the ld. CIT(A).

We have heard the rival contentions and perused the record placed before us.

The issue of disallowance of employees’ contribution towards PF & ESI at Rs.10,63,921/- is in challenge before us. Undisputedly, the said sum was deposited after due date prescribed under the relevant Act governing PF & ESI and the same were deposited before the due date of filing of return of income u/s 139(1) of the Act. At the time of hearing, various decisions were relied upon by the assessee. However, at the time of dictation, we came across the judgment of the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. v. Commissioner of Income-tax-1 [2022] 143 taxmann.com 178 (SC), wherein the Hon’ble Apex Court held in favour of the revenue holding that strict compliance with Section 36(1)(va) r.w.s. 2(24)(x) is a must to claim deduction and provisions of Section 43B of the Act cannot be applied on employees’ contribution to PF & ESI and further held that the High Court rulings favouring the assessee had not laid down the correct Pengg Usha Martin Wires Private Limited law. We find that the instant appeal was heard on 13/10/2022 and the judgment of the Hon’ble Supreme Court was passed on 12/10/2022 and the position of law stands well settled and such employees’ contribution towards PF & ESI if not deposited before the due date prescribed under the relevant Act governing PF & ESI, then in view of the provisions u/s 36(1)(va) r.w.s. 2(24)(x) of the Act, all such amounts shall be added to the income of the assessee. Therefore, respectfully following the ratio of law laid down by the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. (supra), we fail to find any merit in the grounds raised by the assessee. Hence, we uphold the finding of the ld. CIT(A) and dismiss all grounds raised by the assessee.

In the result, appeal of the assessee is dismissed.

""यथ" / The Respondent 3. संबंिधत आयकर आयु" / Concerned Pr. CIT 4. आयकर आयु" अपील / The CIT(A)- ( ) िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण "ायपीठ,कोलकाता/DR,ITAT,

Kolkata, 6. गाड" फाईल /Guard file.