Case Law Details
Parminder Kuma Vs ITO (ITAT Delhi)
ITAT Delhi held that delayed deposit of the contribution EPF & ESIC beyond the stipulated period prescribed in the respective Acts are not allowable as deduction.
Facts- The return of income was processed 143(1) of the Act by making disallowance of Rs. 44,03,784/- under section 36 of the Act and Rs.5,14,395/- on account of non-remittance of EPF & ESIC Service Tax within the due date of respective Act. Aggrieved by the intimation, the assessee filed a rectification request, the Assessing Officer vide rectification order dated 29/04/2022 passed order u/s 154 of the Income Tax Act. As against the intimation u/s 143(1) of the Act, the assessee preferred the Appeal before the CIT(A) and the CIT(A) vide order dated 19/01/2019 dismissed the Appeal filed by the assessee.
Conclusion-The Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. vs. CIT-1 in Civil Appeal No. 2833 of 2016, vide order dated 12/10/2022 held that delayed deposit of the contribution EPF & ESIC beyond the stipulated period prescribed in the respective Acts are not allowable.
Thus, following the ratio laid down by the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. (Supra), we find no merit in the ground of the Assessee and we find no infirmity in the order of the CIT(A) in confirming the addition u/s 36 of the Act for delayed deposit of EPF & ESIC. Accordingly, the Assessee’s Appeal is hereby dismissed.
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