COGNEESOL PRIVATE LIMITED,MOHALI V. ADDLJCIT (A), AURANGABAD

ITA 526/CHANDI/2024

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Cogneesol Private Limited appealed against the order of the CIT(A), Aurangabad, which confirmed the disallowance of deduction for employees' contributions to ESI/PF accounts under Section 36(1)(va) of the Income Tax Act for the assessment year 2017-18. The Tribunal considered the judgment of the Supreme Court in Checkmate Services P. Ltd. & Ors. vs. CIT & Ors., which clarified that such contributions must be paid within the due dates to be eligible for deduction. The Tribunal found no merit in the appeal as the assessee failed to demonstrate that the contributions were made within the stipulated deadlines.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772911 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 04-05-2024
• Other Referred Cases: Checkmate Services P. Ltd. & Ors. VS. CIT & Ors. (2022) 448 ITR 518 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: DEEPAK AGGARWAL
• Keywords: Business expenditure
• Section: 37; 43B

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 526/CHD/2024 Ǔनधा[रण वष[ / Assessment Year: 2017-18 Cogneesol Private Limited, D-253, Focal Point, Phase 8A, Mohali, Punjab 160055 Vs The Addl. CIT(A), Aurangabad èथायी लेखा सं./PAN NO: AADCC3271D अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent PHYSICAL HEARING Assessee by : Shri Deepak Aggarwal, Advocate Revenue by : Sh. Vivek Vardhan, Addl. CIT, Sr.DR Date of Hearing : 24.09.2025 Date of Pronouncement : 24.09.2025 O R D E R PER LALIET KUMAR, JM: The assessee is in appeal before the Tribunal against the order of the ld. Addl. / JCIT (A), Aurangabad dated 05 .03.2024 passed for assessment year 2017-18. 2. The grounds of appeal are as under: Printed from counselvise.com ITA No.. 526/CHD/2024 2 1. That the Ld. CIT(A) has erred in interpreting section 36(1)(va) of the Act independently without considering the provisions of section 43B of the Act. 2. That the Ld. CIT(A) has erred in deeming the impact of Explanation 2 to Section 36(1)(va) and Explanation 5 to Section 43B as retrospective. 3 That the Ld. CIT(A) has erred in making additions of Rs. 57,390/- on account of business expenditure incurred at clubs being entrance fees and subscription as per section 37 of the Act. 2. The assessee has taken three grounds of appeal, however, its grievance revolves around a single issue namely, ld. CIT(A) has erred in confirming the disallowance which was made under Section 36(1)(va) of the Income Tax Act. The assessee was unable to pay employees’ contribution to respective ESI/PF Accounts within the due date, therefore, following the judgement of Hon'ble Supreme Court in the case of Checkmate Services P. Ltd. & Ors. VS. CIT & Ors. (2022) 448 ITR 518 (SC), addition has been confirmed. 3. On due consideration of the record with the assistance of ld. Representative, we do not find any merit in this appeal. The ld. CIT(A) has rightly confirmed the disallowance. It has Printed from counselvise.com ITA No.. 526/CHD/2024 3 not been demonstrated before us as to how employees’ contribution was paid to respective ESI/PF accounts within due date and if it was not paid within due date, then deduction cannot be allowed to the assessee as business expenditure. 4. The ld. CIT(A) has rightly placed reliance upon the judgement of Hon'ble Supreme Court in the case of Checkmate Services P. Ltd. & Ors. VS. CIT & Ors. (2022) 448 ITR 518 (SC). Accordingly, the order of the Ld. Addl. / JCIT(A) is confirmed and the appeal filed by the Assessee is dismissed. 6. In the result, appeal of the assessee is dismissed. Order pronounced on 24.09.2025. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER “rkk” आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "