Delayed payment of employee contribution to PF/ ESI beyond the ambit of adjustments u/s 143(1)

Paris Elysees India Private Limited Vs DCIT (ITAT Jaipur)

ITAT Jaipur held that delayed payment of employee contribution to PF/ESI as prescribed u/s 36(1)(va) of the Income Tax Act is beyond the ambit of adjustments to be carried out u/s 143(1) of the Income Tax Act.

Facts- The assessee filed its Return of Income for A.Y. 2018-19 on dated 31.10.2018. The return was processed u/s 143(1) on 12.11.2019 making adjustment of Rs.4,62,183/- u/s. 36(1)(va) of Income Tax Act, 1961. Aggrieved by the said adjustment made by the CPC, the assessee has filed this appeal before the ld. CIT(A). CIT(A) dismissed the same. Being aggrieved, the present appeal is filed.

Conclusion- On going the tax audit report and provision of section 143(1) of the Act we are of the considered view that the PF and ESI being the deemed income of the assessee as the same is collected from the employee salary and therefore, the same is not under the permissible adjustments.

FULL TEXT OF THE ORDER OF ITAT JAIPUR

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