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2023 (5) TMI 783 - AT - Income TaxDelayed payment of employee’s contribution to ESI and PF - Payment beyond the due date by invoking the provisions of section 36(1)(va) but within the due date for filing return of income u/s.139(1) of the Act.n the case of CHECKMATE SERVICES PVT LTD VS CIT-1 [2022 (10) TMI 617 - SUPREME COURT] held that allowability/treatment of ‘delayed’ Employee PF Contribution payment to be taxable in hands of assessee under provisions of Income Tax Act. Hon’ble Supreme Court 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 the Act. It was held that 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) 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 disallowance made by the Revenue authorities, were fully justified. Grounds raised by the assessee stands dismissed.
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