Home » TaxBuzz » Delhi High Court Upholds Disallowance of Late EPF/ ESI Deposits under Section 143(1)

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In a significant judgment, the Delhi High Court upheld validity of disallowance of late deposit of employees’ contribution towards EPF and ESI made vide intimation issued under section 143(1) of the Income-tax Act, 1961. Citing judgment of the Supreme Court in the case ofCheckmate Services (P) Ltd deciding allowability of aforesaid deduction in favour of the Revenue, the High Court held that adjustments in relation to incorrect claims can be made under section 143(1)(a)(ii), where incorrectness of the claim is apparent from the return.

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