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Facts
The assessee's twin appeals for AY 2019-20 and 2020-21 arose against orders dated 04.07.2025. The lower authorities invoked Section 36(1)(va) for disallowance of ESI/PF contributions. The assessee did not appear, and the appeals were proceeded ex-parte.
Held
The Tribunal noted that the issue of disallowance of ESI/PF contributions for non-compliance with the due date under the relevant statute, as opposed to the return filing date, has been settled by the Hon'ble Apex Court in Checkmate Services Pvt Ltd Vs. CIT.
Key Issues
Whether disallowance of ESI/PF contributions paid after the statutory due date but before the return filing date is justified.
Sections Cited
154, 36(1)(va), 139(1)
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Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
ORDER PER SATBEER SINGH GODARA, JM These assessee’s twin appeals & 5320/Del/2025 for assessment years 2019-20 and 2020-21, arises against the Commissioner of Income Tax (Appeals)/Addl/JCIT(A)- 7, Mumbai’s [in short, the “CIT(A)”], Delhi’s orders, both dated 04.07.2025, having DINs and orders no. ITBA/APL/S/250/2025- 26/1078201193(1) and ITBA/APL/S/250/2025- 26/1078201641(1) involving proceedings under section 154 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), respectively. Cases called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
It emerges during the course of hearing with the able assistance coming from the Revenue side that both the learned lower authorities herein have invoked section 36(1)(va) ESI/PF disallowance amounting to Rs.20,43,335/- for AY 2019-20 and Rs.19,27,108/- for AY 2020-21 in the CPC’s section 143(1) processing as upheld in the lower appellate discussion.
Suffice to say, the instant issue hardly requires our detailed adjudication in light of the fact that hon’ble apex court’s recent landmark decision in Checkmate Services Pvt Ltd Vs. CIT [2022] 143 taxmann.com 278 (SC) has already settled the same against the assessee and in department’s favour that such an employee’s contribution to ESI/PF ought to be credited on or before the due date given in the corresponding statute than that of filing of return u/s 139(1) of the Act. We thus see no merit in the assessee’s sole substantive grievance in principle. Ordered accordingly.