Section 143(1)(a)(ii) of the Income Tax Act
Income-tax Act, 2025: s.270
Section 143(1)(a)(ii) falls under section 143 of the Income-tax Act, 1961, which corresponds to section 270 (Assessment) of the Income-tax Act, 2025.
Read section 270 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 143(1)(a)(ii) is CIT v. Bharat Hotels Ltd. (410 ITR 417), cited in 486 of the 97 judgments on BharatTax that turn on this section.
Leading authorities on Section 143(1)(a)(ii)
Employee contributions to provident fund and ESI, if paid beyond the due date prescribed by the respective welfare fund statutes, are not allowed as a deduction under the Income Tax Act.
Reopening of assessment beyond four years under Section 147 requires strict satisfaction of conditions precedent, including fresh tangible material, and cannot be based on a mere change of opinion from the original assessment. Further, debatable or interpretational issues cannot be adjusted during processing under Section 143(1).
Where an assessee-employer deposits the employees' share of contribution towards provident fund and ESI beyond the statutory due dates, disallowance under section 36(1)(va) is justified, and such disallowance is a proper adjustment under section 143(1)(a).
Disallowance of employees' contribution to ESI and PF made under section 143(1)(a) is valid if paid beyond the due date prescribed by the respective Acts, even if paid before the due date for filing the return of income under section 139(1).
Interest paid or incurred on the late deposit of Tax Deducted at Source (TDS) is not an allowable expenditure.
The Central Processing Centre (CPC) is empowered to disallow delayed payments of PF/ESIC under Section 143(1) of the Income Tax Act. This disallowance is valid even if the original assessment was framed under Section 143(3).
