Post-Checkmate Law: Late PF/ESI Deposits Mandate Disallowance

Bansi Agrawal Vs ACIT (ITAT Raipur) Delayed Employees’ PF/ESI Contribution Disallowed Post-Checkmate: ITAT Raipur Upholds Addition The Raipur Bench of the ITAT dismissed the assessee’s appeal for AY 2018-19, upholding the disallowance of employees’ contribution to PF/ESI that was deposited beyond the due dates prescribed under the respective labour laws. The Tribunal relied squarely on the Supreme Court’s ruling in Checkmate Services (P) Ltd. v. CIT (2023) 6 SCC 451, holding that such delayed deposits are deemed income of the employer and not allowable as deduction under section 36(1)(...