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2023 (4) TMI 797 - AT - Income TaxEmployees’ contribution for the Provident Fund and ESI, which was made after due date of respective Act and paid within due date of filing return u/s 139(1) - HELD THAT:- This issue came for consideration before 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’ Employee PF Contribution payment in hands of assessee under provisions of Income Tax 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., employee's 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 u/s. 139(1) of Income Tax Act, 1961. The result of any failure to pay within the prescribed dates also leads to different results. In the case of employee's contribution, any failure to pay within the prescribed due date under the respective PF Act or Scheme will result in negating employer's claim for deduction permanently forever u/s.36(1)(va). On the other hand, delay in payment of employer's contribution is visited with deferment of deduction on payment basis u/s.43B and is therefore not lost totally. Therefore, as per the above decision, the disallowance made by the Revenue authorities, were fully justified. Decided against assessee. Adjustment u/s 143(1) - Since the issue is already disposed of by the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. cited (supra), it has to be followed by the department as well as by this Tribunal. We find no merit in the argument of the assessee’s counsel that disallowance of employees’ contribution to ESI/PF deposited by the assessee after the specified date prescribed under the respective Act was beyond the scope of adjustment u/s 143(1) of the Act - Decided against assessee.
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