NAGAUR URBAN COOPERATIVE BANK LIMITED,NAGAUR vs. ITO, WARD-1,, NAGAUR
Facts
The assessee challenged a disallowance of Rs. 6,51,147 made by the CPC under Section 154, related to employees' contribution to PF and ESI for the assessment year 2022-23. The assessee's adjournment request was rejected due to lack of supporting evidence.
Held
The Tribunal upheld the disallowance, citing the Supreme Court's decision in Checkmate Services Pvt. Ltd. Vs. CIT, which states that employees' contributions to PF and ESI paid after the due date are not deductible. The adjustment made by the CPC was deemed permissible under Section 143(1).
Key Issues
The key legal issue was the permissibility of disallowing employees' contributions to PF and ESI when paid after the due date, and whether such an adjustment falls within the scope of Section 143(1).
Sections Cited
Section 154, Section 36(1)(va), Section 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR
IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE DR. MITHA LAL MEENA, HON’BLE ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, HON’BLE JUDICIAL MEMBER ITA No. 882/Jodh/2024 (Assessment Year – 2022-23) Nagaur Urban Coop Bank Income Tax Officer, Ward – 1 Limited Nagaur - 341001 Head office Bal Samand, Nagaur - 341001 PAN No. AAAAN 7788 B Assessee by None (Adjournment Application) Shri K.C. Meena, Addl. CIT-DR (Virtual) Revenue by Date of Hearing 12.01.2026. Date of Pronouncement 28.01.2026. ORDER DR. MITHA LAL MEENA, A.M.: The appeal by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [hereinafter referred to as “the NFAC/CIT appeal”] dated 27.09.2024 with respect to assessment year 2022-23 challenging therein disallowance of Rs. 6,51,147/- by CPC invoking provisions of Section 154 of the Income Tax Act.
None attended for the assessee and an unsigned adjournment application was received stating therein that due to poor health position of my father, I may not be able to appear today in the case of Nagaur Urban Coop.
ITA No. 882/Jodh/2024 Asst. Year: 2022-23 2 Bank Ltd. “ITA No. 882/Jodh/2024.” The reasons mentioned in the adjournment application are not supported with any evidence regarding the health position which is in our view does not construed sufficient cause or valid reason for seeking adjournment.
Accordingly, the adjournment application is rejected and the appeal was taken up for hearing as being a covered matter on the issue pertains to employees contribution of PF and ESI by the Apex Court in the case of “Checkmate Services Pvt. Ltd. Vs. CIT (2022) 448 ITR 518 (SC).”
Having heard the Ld. DR and perusal of record, we find that the disallowance of relief payment of employees contribution to PF and ESI in terms of Section 36(1)(va) is incorrect claimed as per the information furnished in the return of income.
Presently the issue of employees contribution of PF and ESI is settled and, therefore, the adjustment made by the CPC on this issue is permissible under the scope of Section 143(1) in the light of the judgment delivered by the Hon’ble Apex Court in the case of “Checkmate Services Pvt. Ltd. Vs. CIT (2022) 448 ITR 518 (SC).” Where it has been observed that if the payment has been made with respect to employees contribution after the due date, same has to be disallowed and cannot be allowed as deduction as per the law u/s 143(1).
ITA No. 882/Jodh/2024 Asst. Year: 2022-23 3 The judgment of the Hon’ble Supreme Court is a law of land, which has to be interpreted with the position of law from the date of enactment of provision, following Hon’ble Apex Courts in the case of “Checkmate Services Pvt. Ltd.(supra)” disallowance of Rs. 6,51,147 u/s 154 read with Section 36(1)(va) of the Income Tax Act is rightly confirmed by the Ld. CIT(A) and, therefore, the impugned order passed by the Ld. CIT(A) is sustained.
In the result, the appeal filed by the assessee is dismissed.
Order pronounced in the open court on 28/01/2026. Sd/- Sd/- (SUDHIR PAREEK) (DR. MITHA LAL MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 28/01/2026. Nimisha Copies to : (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File True Copy
BY ORDER, (Asstt. Registrar), ITAT, Jodhpur
