Delayed payment in respect of employees contribution to PF & ESI is not allowable

BBG Metal Syndicate Pvt Ltd Vs DCIT (ITAT Cuttack)

Admittedly, the Hon’ble Supreme Court in the case of Checkmate Services Pvt Ltd(supra) has categorically held that the employees contribution to PF and ESI to the extent it is not paid within due date prescribed under the PF Act, is not allowable u/s.36(1)(va) of the Act. The Hon’ble Supreme Court has also admittedly held that the provisions of section 43B would not apply to the provisions of section 36(1)(va) of the Act in respect of employees contribution. Respectfully following the decision of Hon’ble Supreme Court in the case of Checkmate Services Pvt Ltd(supra), we are of the view that the delayed payment in respect of employees contribution to PF and ESI is not allowable.

FULL TEXT OF THE ORDER OF ITAT DELHI

1. This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 12.5.2022 in Appeal No.ITBA/NFAC/S/250/2022 -23/10430140216(1) for the assessment year 2018-19.

2. Shri K.K.Bal ld AR appeared for the assessee and Shri S. C. Mohanty, ld Sr DR appeared for the revenue.

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