Shilpa Steel And Power Ltd. Vs DCIT (ITAT Nagpur)
ITAT Nagpur held that delayed payment of employees’ contribution to PF and ESIC is liable to be disallowed. Accordingly, addition to extent of belated payment confirmed.
Facts- In the intimation u/s. 143(1), addition of Rs. 26,49,199, was made on account of late payment of contribution received from Employees for Provident Fund and State Insurance Corporation Fund. After the receipt of intimation, the assessee found mistake in the Tax Audit Report in which the Tax Auditor has mistakenly filled the due date of payment in column of actual date of payment and vice-versa. Thus, the payments mentioned therein were made before the due date, but due to unintentional typographic and feeding error by the Tax Auditor in the Form 3CD, the same appears to be a delayed payment. The Tax Audit Report was revised correcting the mistakes and thereafter the return of income was reprocessed consequent to which rectification order dated 04/02/2020, passed u/s. 154 of the Act wherein the amount of addition was revised to ₹ 9,88,728, considering the corrections made in the Tax Audit Report.
CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.
Conclusion- Held that this issue of addition made on account of belated payment of employees’ contribution to PF and ESIC is now covered by the decision of Supreme Court in Checkmate Services (P.) Ltd. Accordingly, following the judgement of Supreme Court, the ground of the assessee’s appeal stands dismissed. In view thereof, the addition to the extent of ₹ 9,88,728, is confirmed in view of the judgement of Hon’ble Supreme Court in Checkmate Services Pvt. Ltd.
