Disallowance of delayed employees’ contribution vide u/s. 143(1) sustained based on auditor’s observation

Checkmate Services Pvt. Ltd Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad held that disallowance of delayed payment of employees’ contribution to EPF and ESI in terms of section 143(1) of the Income Tax Act can be made based on auditor’s observation. Accordingly, disallowance upheld. Facts- The assessee had filed return of income on 11.10.2018 declaring total income of Rs. 9,38,37,480/-. The return of income was processed by CPC, Bengaluru and intimation u/s. 143(1) of the Act dated 24.12.2019 was issued after making adjustments / increase in income of Rs. 4,20,77,998/- on account of delay in de...