Case Law Details
Vishivkarma Bikes Vs DCIT (ITAT Chandigarh)
ITAT Chandigarh held that late deposit of employees’ share of PF/ ESI contribution to the relevant funds beyond prescribed due date as per respective Act is liable to be disallowed.
Facts- The return was processed by the CPC and order under section 143(1) dt. 03/09/2019 was passed wherein the disallowance of Rs. 154,701/- invoking the provisions of Section 143(1)(a)(iv) was made for fault of the assessee to pay the employees contribution to PF/ESI before the prescribed due date under the relevant statue. Against the said intimation and the disallowance so made under section 36(1)(va) r.w. s 143(1)(a)(iv) of the Act, the assessee filed an appeal before the Ld. CIT(A), NFAC which was dismissed.
Against the order of the Ld. CIT(A), NFAC, the assessee is in appeal before us.
Conclusion- We are of the considered opinion that the ld. CIT(A) was justified in sustaining the adjustment u/s 143(1)(a) by means of disallowance of Rs 154,701/- made for late deposit of employees’ share of PF/ESI contribution to the relevant funds beyond the date prescribed under the respective Acts.
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