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2023 (4) TMI 626 - AT - Income TaxDisallowance of employees contribution towards PF/ESI u/s 36(1)(va) - AR submitted that the assessee deposited the contribution towards PF/ESI belatedly, however, the said deposits were made prior to filing of return of income under section 139(1) - HELD THAT:- We find that the matter is squarely covered by the decision of Hon’ble Supreme Court in case of Checkmate Services P. Ltd. & Ors.[2022 (10) TMI 617 - SUPREME COURT] wherein after taking into consideration the relevant provisions of the Act as well as the provisions of relevant welfare ESI/PF schemes, it was held that the contribution by the employees to the relevant funds is the employer’s income under section 2(24)(x), but the deduction for the same can be allowed under section 36(1)(va) only if such sum is deposited in the employee’s account in the relevant fund before the date stipulated under the respective Act and as rightly pointed out by the DR that the ratio laid down by the Hon’ble Karnataka High Court [2014 (3) TMI 386 - KARNATAKA HIGH COURT] stand overruled by the decision of the Hon’ble Supreme Court and the same doesn’t support the case of the assessee. Disallowance made by CPC while processing the return of income and specially in the context of 143(1)(a)(iv) - we find that the matter is squarely covered by the decision Cemetile Industries & Ors [2022 (12) TMI 354 - ITAT PUNE] - CIT(A) was justified in sustaining the adjustment u/s 143(1)(a) by means of disallowance made for late deposit of employees’ share of PF/ESI contribution to the relevant funds beyond the date prescribed under the respective Acts. Appeal of the assessee is dismissed.
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