Alankit Limited Vs DCIT (ITAT Delhi)
PF Delay- Checkmate- Check DATE- Due Date Depends on Salary Payment, Not Calendar Month
Actual Salary Payment Date is the Key – Tribunal Unlocks Relief Under 36(1)(va)
Alankit Limited filed its return of income for AY 2019-20. CPC, Bengaluru processed the return u/s 143(1) and made two major adjustments:
- Disallowance of ₹70,67,205 u/s 36(1)(va) (delay in deposit of employees’ PF/ESI contribution)
- Addition of deferred tax liability to book profit u/s 115JB, resulting in double addition (raised in grounds but not pressed before ITAT)
Assessee challenged the 143(1) adjustment before CIT(A), arguing:
- The issue is debatable & cannot be adjusted u/s 143(1).
- Due date for deposit of employees’ PF/ESI must be linked to actual salary disbursement, not the salary month.
- Contribution was actually deposited within 15 days from the month of payment, hence no default.
CIT(A) upheld the disallowance. Assessee appealed before ITAT.
Before the ITAT
Assessee’s argument:
- Deposits were made within 15 days of the month in which salary was actually paid.
- Relied on ITAT Delhi decision in Benson Movers Pvt. Ltd. (AY 2019-20) where similar issue was remanded to AO to verify actual salary payment dates.
- Requested remand for verification of factual matrix.
Revenue’s argument:
- Relied on Supreme Court in Checkmate Services (P) Ltd. (2022) – employees’ contribution must be deposited within the due date under PF/ESI laws, otherwise disallowable.
- Opposed remand.
Tribunal’s Decision
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