Delayed remittance of Employees PF/ESI can be disallowed vide Section 143(1) adjustment

Subramanya Karthik Vs ITO (ITAT Bangalore)

ITAT held that decisions cited by the learned Counsel for the assessee proceed on the assumption that the disallowance of employees’ share of PF and ESI paid beyond the due dates under relevant law has been made only under section 143(1)(a)(iv) of the Act, while in the intimation under section 143(1)(a) of the Act, no such basis has been given and therefore the disallowance can be justified even in terms of section 143(1)(a)(ii) of the Act.

FULL TEXT OF THE ORDER OF ITAT BANGALORE

This appeal by the assessee is directed against the order of the CIT(A)/NFAC, Delhi dated 26.10.2022 for the assessment year 2019-20.

2. The assessee is in appeal before us with regard to the disallowance of Rs. 16,26,688/- towards employees’ contribution to PF and ESI under Section 36(1)(va) of the the Income Tax Act, 1961 (the Act) by way of the following grounds: –

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