SAINATH SALES AND SERVICES PRIVATE LIMITED,DELHI vs. ITO,WARD 22(2), DELHI

We note that the short issue in this case is whether authorities below are correct in making the addition under section 143 (1) of the Income-tax Act, 1961 (for short 'the Act') on account of PF & ESI contribution by the employees paid beyond the time specified in the respective statute but before the due date of filing of return u/s 139 (1) of the Act.

We find that the issue on merits is covered against the assessees by the decision of Hon’ble Apex Court in the case of Checkmate Services Pvt. Ltd. (2022) 143 taxmann.com 178 wherein it has been held that if employee contribution of provident fund and ESI paid beyond due date as specified under the relevant Act then the same has to be added back in the income of the assessee. Respectfully following the precedent, we do not find any infirmity in the orders of the ld. CIT (A). Accordingly, we uphold the same.

In assessee has also raised an additional ground which reads as under :- “The Ld. AO erred in law in passing the order u/s 143 (1) in a template text format without any cogent and specific reason on debatable and controversial issue which was clearly beyond the scope of sec.143 (1).”

Upon careful consideration, we are of the opinion that the additional ground is also liable to be dismissed on the touchstone of aforesaid order of Hon’ble Supreme Court. After the authoritative pronouncement by the Hon’ble Supreme Court, this issue no more remains debatable. Hence, the additional ground is also dismissed.