AVINASH MULCHAND GOTHI (HUF),NASHIK vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, NASHIK

This is the second round of litigation before the Tribunal. A perusal of the record shows that the Tribunal had passed the order on 27.09.2022 allowing the appeal of the assessee by deleting the addition on account of delay in payment of employees’ contribution to PF and ESI. Subsequently, the Revenue filed a Miscellaneous Application and the Tribunal vide MA No.259/PUN/2023 order dated 05.03.2025 recalled the order. Hence, this is a recalled matter.

Facts of the case, in brief, are that the assesse is a HUF carrying on the business of hotel and land dealing. It filed its return of income on 31.10.2019 declaring total income of Rs.72,37,724/-. The CPC in the intimation passed u/s 143(1)(a) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) proposed the disallowance of Rs.1,73,046/- on account of delayed payment of employees’ contribution to PF and ESI.

The assessee preferred an appeal before the Ld. CIT(A) / NFAC, who upheld the same.

Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal.

None appeared on behalf of the assessee at the time of hearing despite number of opportunities granted. Since admittedly the assessee has made the deposit on account of employees’ contribution to PF and ESI after the statutory time allowed under the said Acts, therefore, in view of the decision of the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. vs. CIT reported in [2022] 143 taxmann.com 178, such delayed payment on account of employees’ contribution to PF and ESI was rightly disallowed by the CPC. We, therefore, uphold the order of the Ld. CIT(A) / NFAC on this issue. The grounds raised by the assessee are accordingly dismissed.