Avinash Mulchand Gothi (HUF) Vs ACIT (ITAT Pune)
Checkmate Strikes Again- Recalled Case Ends Against Assessee — Delay in Employees’ Contribution Fatal
This matter came before Tribunal in second round following recall of earlier order by MA No.259/PUN/2023 dated 05.03.2025. Assessee, a HUF engaged in hotel & land-dealing business, filed ROI declaring ₹72,37,724. CPC, in intimation u/s 143(1)(a), disallowed ₹1,73,046 towards delayed employees’ contribution to PF & ESI. CIT(A)/NFAC upheld the adjustment.
At hearing, no one appeared for Assessee. Tribunal noted admitted fact that employees’ contribution was deposited after due dates prescribed under respective welfare laws. Relying on Supreme Court judgment in Checkmate Services Pvt Ltd (2022) 143 taxmann.com 178, Tribunal held that delayed payment of employees’ share is not allowable, irrespective of payment before ROI filing.
Since CIT(A) merely followed binding Supreme Court law & facts were undisputed, Tribunal upheld the disallowance u/s 143(1).
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal filed by the assessee is directed against the order dated 25.08.2021 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2019-20.
2. This is the second round of litigation before the Tribunal. A perusal of the record shows that the Tribunal had passed the order on 27.09.2022 allowing the appeal of the assessee by deleting the addition on account of delay in payment of employees’ contribution to PF and ESI. Subsequently, the Revenue filed a Miscellaneous Application and the Tribunal vide MA No.259/PUN/2023 order dated 05.03.2025 recalled the order. Hence, this is a recalled matter.
