Non-deposit of employees contribution to ESI and PF within due date disallowed

Om Infra Limited Vs ADIT (CPC) (ITAT Jaipur)

ITAT Jaipur held that non-deposit of employees contribution to ESI and PF within due date as per the respective Act is disallowance by invoking provisions of section 36(1)(va) r.w.s. 2(24)(x) of the Income Tax Act.

Facts- An intimation was issued u/s 143(1) of the Act, whereby, adjustment of PF & ESI was not paid within time for an amount of Rs. 41,89,576/- and unpaid service tax was disallowed as per provision of Section 43B of the Income Tax Act for an amount of Rs. 1,07,621/-.

CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.

Conclusion- Held that ITAT, Bangalore in the case of Mahaveer Bulk Carriers Vs. Assistant Director of Income Tax has held that since the assessee has not deposited the employees – contribution within the due date as per the respective Acts disallowance can be made as per 36(1)(va) r.w.s. 2(24)(x).

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