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2023 (3) TMI 461 - AT - Income TaxDelayed payment of employee’s contribution to PF/ESI - Assessment u/s 143(1) - HELD THAT:- Hon'ble Supreme Court in the case of Checkmate Services Pvt. Ltd. [2022 (10) TMI 617 - SUPREME COURT] decided the issue on allowability/ treatment of ‘delayed’ payment of employee’s contribution to PF/ESI in hands of the assessee under the provisions of the Income Act and held that Section 36(1)(va) and Section 43B(b) operate on totally different equilibriums and have different parameters for due dates, i.e. employees’ contribution is linked to payment before the due dates specified in the respective Acts and employer’s contribution is linked to the payment before the prescribed due date for filing of return of income under Section 139(1) of the Act. The result of any failure to pay within the prescribed dates also leads to different results. In case of employees’ contribution, any failure to pay within the prescribed dates under the respective PF Act of Scheme, will result in negating the employer’s claim for deduction permanently forever under Section 36(1)(va) of the Act. On the other hand, delay in payment of employer’s contribution is visited with deferment of deduction on payment basis u/s 43B of the Act and is therefore not lost totally. Therefore, as per the above decision, the additions made by Revenue authorities were fully justified. We are of the view that the decisions cited by the learned Counsel for the assessee proceed on the assumption that the disallowance of employees’ share of PF and ESI paid beyond the due dates under relevant law has been made only under section 143(1)(a)(iv) of the Act, while in the intimation under section 143(1)(a) of the Act, no such basis has been given and therefore the disallowance can be justified even in terms of section 143(1)(a)(ii) of the Act. - Decided against assessee.
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