Sanjiv Prakashan Vs ACIT (ITAT Jaipur)
ITAT Jaipur held that disallowance of contribution of EPF/ESI of employees contribution justified since amount deposited beyond the due date of respective Acts. Notably, deduction is not allowance even if contribution is deposited before filing of return u/s. 139(1).
Facts- The assessee is engaged in the business of educational publication. AO in his order assessed the income of the assessee at Rs.5,61,08,400/- after making disallowance u/s 36(1)(va) of the Act amounting to Rs. 16,46,879 (i.e. Rs.15,51,701/- towards PF and Rs. 95,178/- towards ESI) due to the fact that contribution of EPF/ESI of employees contribution was deposited beyond the due date of respective Acts. The assessee claimed that the same had been deposited in Govt. account before filing of the return of income u/s 139(1) of the Act. But ld. AO made an addition of Rs.16,46,879/- on account of late deposit of employees’ contribution towards EPF/ESI u/s. 143(1) of the Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed by the assessee.
Conclusion- Held that the disallowance of payment of ESI & PF while processing the return of income u/s. 143(1)(a) of the Act, the ld. CIT(A) has followed the judgment of CIT-1 vs. Checkmate Service Pvt. Ltd. and disallowance so made was considered in accordance with law clarified by the Hon’ble Apex Court.
