Where assessee deposited employees’ contribution to PF and ESI after due date under the respective Acts but before due date of return under section 139(1) during COVID-19 period, since issue regarding deductibility was debatable and pending before Supreme Court, adjustment under section 143(1) was not permissible.

32. (2026) 186 taxmann.com 1020 (Jodhpur Trib)

Yadvendra Dhabhai v. ITO

A.Y.: 2021-22

Date of Order: 21.05.2026

Sections: 36(1)(va), 143, 154

Where assessee deposited employees’ contribution to PF and ESI after due date under the respective Acts but before due date of return under section 139(1) during COVID-19 period, since issue regarding deductibility was debatable and pending before Supreme Court, adjustment under section 143(1) was not permissible.

FACTS

The assessee filed his return of income for AY 2021-22. The return was processed by the CPC under section 143(1) making an addition of Rs. 1,85,03,917 on account of delayed deposit of employees’ contribution as per due dates prescribed under the PF and ESI Acts, though such payments were admittedly deposited before the due date of filing the return of income under section 139(1). The assessee filed a rectification application under section 154 with a request to grant relief since the delay was due to unprecedented disruption caused by COVID-19 pandemic. However, the CPC rejected the said application.

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