The assessee is a firm engaged in infrastructure development. The primary issue was whether the assessee-firm could claim a deduction under section 36(1) (va) of the Income-tax Act for employees’ contributions towards PF and ESIC that were paid after the due date.

The revenue contended that the assessee’s claim for deduction of employees’ contributions to PF and ESIC, made beyond the due date, was rightly disallowed under section 36(1) (va) of the Income-tax Act. 

The Hon’ble High Court noted that the issue of claiming a deduction under section 36(1) (va) for delayed payment of employees’ contributions to PF and ESIC had already been settled by the Supreme Court in the case of Checkmate Services (P.) Ltd. v. CIT.(2022)448 ITR 518 (SC).  The Hon’ble High Court thereby dismissed the appeal as devoid of merit.  Delay of 690 days in filing of appeal before the Tribunal is not condoned as there was no reasonable cause.(AY.2019-20)