The Revenue filed a miscellaneous application before the tribunal seeking recall of its order dated 03.08.2022 for a fresh hearing and submitted that the Supreme Court in the case of Checkmate Servies Pvt. Ltd. v. CIT [2022] 143 taxmann.com 178/[2023] 290 taxman (2022) 448 ITR 518(SC) upheld the disallowance made under section 36(1)(va) due to delayed payments towards employee’s contribution to PF/ESIC. The ITAT has allowed the miscellaneous application of the Revenue and held that the payment towards employee’s contribution to PF/ESIC after due date prescribed under the relevant statue is not allowable as a deduction u/s 36(1)(va) of the Act . (AY. 2019-20)
DCIT v. Inventys Research Co. (P.) Ltd. (2023) 203 ITD 24 (Mum) (Trib)
S.36(1)(va): Any sum received from employees- Delayed payments of Employee’s contribution to PF/ESI- Payment after due date was not allowable – Appellate Tribunal-Rectification of mistake apparent from the record – Miscellaneous application of Revenue is allowed. [S. 43B ,254(2)]