2023 (2) TMI 1332 - AT - Income Tax

Disallowance of employees contribution to Provident Fund/ESIC u/s 36(i)(va) r.w.s. 43B - Assessment u/s 143(1) - HELD THAT - The issue towards taxability of belated employees contribution to Provident Fund/ESIC is no longer res integra in the light of the judgement of the Hon ble Supreme Court in the case of Checkmate Services (P.) Ltd. 2022 (10) TMI 617 - SUPREME COURT The co-ordinate Bench of the Tribunal in Cemetile Industries 2022 (12) TMI 354 - ITAT PUNE had expressed a view that such adjustment/disallowance is also permissible in the proceedings carried out u/s 143(1) of the Act. Very recently, in Savleen Kaur Others 2023 (2) TMI 51 - ITAT DELHI for AY 2018-19 in BT Data and Surveying Services India Pvt. Ltd. 2023 (2) TMI 1329 - ITAT DELHI has also taken a similar view and upheld the action of the Revenue. In parity with the view taken by Co-ordinate Benches, we do not see any merit in the appeal of the assessee. We thus, do not see any warrant to any reason to interfere with the order of Ld.CIT(A). Appeal of the assessee is dismissed ex-parte.

Summary

The appeal was filed against an order concerning Assessment Year 2018-19 regarding the disallowance of employees' contribution to Provident Fund/ESIC. The assessee did not appear for the hearing, leading to an ex-parte proceeding. The Revenue supported the disallowance based on late deposits, citing relevant case law. The Tribunal upheld the Revenue's action, citing previous judgments, and dismissed the assessee's appeal ex-parte.