KROWN BAKERS (INDIA) PVT. LTD.,NEW DELHI vs. ITO,WARD-14(4), NEW DELHI

When the appeal was called for hearing, none appeared on behalf of the assessee to represent the case, despite issuance of notice of hearing. Considering the nature of dispute, we proceed to dispose of the appeal ex parte qua the assessee after hearing learned Departmental Representative and based on facts and materials on record.

The dispute in the present appeal is confined to disallowance of deduction claimed on account of delayed payment of employees contribution to Provident Fund (PF) and Employees’ State Insurance (ESI). While processing the return of income filed by the assessee for the impugned assessment year, the Centralized Procession Centre (CPC), having found that employees contribution to PE and ESI were not paid within due date prescribed under the relevant statutes governing such payments in terms of section 36(1)(va) of the Income-tax Act, 1961 (for short ‘the Act’), made adjustment by adding back to the income of the assessee. Though, the assessee filed an application under section 154 of the Act for rectification, however, the same was dismissed by the CPC. Being aggrieved, assessee filed an appeal before the first appellate authority. By the impugned order, the first appellate authority dismissed the appeal by sustaining the addition made by the CPC.

There is no dispute that the assessee has not paid employees’ contribution to PF and ESI within the time limit prescribed under the relevant statutes. It is the case of the 2 | P a g e assessee that the deduction should be allowed as the payment has been made before the due date of filing of return under section 139(1) of the Act. In our view, the aforesaid claim of the assessee is not acceptable, as now the issue stands decided against the assessee by the Hon’ble Supreme Court in case of Checkmate Services Pvt. Ltd. Vs CIT- I (CIVIL APPEAL No. 2833 of 2016 and Ors., dated 12th October, 2022)

In this view of above, we do not find any merit in the ground raised. Accordingly, ground raised is dismissed.

In the result, the appeal is dismised.