KROWN BAKERS (INDIA) PVT. LTD.,NEW DELHI vs. ITO,WARD-14(4), NEW DELHI
In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the deduction for delayed payment of employees' PF and ESI contributions is not allowable, as the payment was not made within the statutory due dates. This decision is in line with the Supreme Court's ruling in Checkmate Services Pvt. Ltd.
What were the facts?
The assessee claimed deduction for delayed payment of employees' contribution to Provident Fund (PF) and Employees' State Insurance (ESI). The CPC disallowed this deduction, and the appellate authority upheld the disallowance.
What were the issues?
Whether deduction for delayed payment of employees' PF and ESI contributions is allowable if paid before the due date of filing the return of income.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘C’ NEW DELHI
Before: SHRI SAKTIJIT DEY & SHRI M. BALAGANESH
ORDER PER SAKTIJIT DEY, JM: This is an appeal by the assessee against order dated 14.10.2022 passed by the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2019-20.
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.
Order pronounced in the open court on 16th May, 2023
More judgments on Section 36(1)(va)
- Vco Consulatatns and Sevices Private… vs ITO, Corporate Ward 3(3), ChennaiITA 2145/CHNY/2025[2019-20]Status: Disposed16 Oct 2026AY 2019-20
- R K Swamy Limited, Chennai vs DCIT Non Corporate Circle 10(1), ChennaiITA 504/CHNY/2026[2018-19]Status: Disposed14 Oct 2026AY 2018-19
- M/S. R.K. Swamy Ltd., Chennai vs DCIT, Ncc-10(1), ChennaiITA 2822/CHNY/2025[2020-21]Status: Disposed14 Oct 2026AY 2020-21
- Rajesh Maru, Mhow vs ITO-5(1), IndoreITA 839/IND/2025[2023-2024]Status: Disposed12 Oct 2026AY 2023-2024
- Rajesh Maru, Mhow vs ITO-5(1), IndoreITA 838/IND/2025[2022-2023]Status: Disposed12 Oct 2026AY 2022-2023
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