The Income Tax Appellate Tribunal (ITAT), Delhi “SMC” Bench, adjudicated on the appeal filed by Senator Travels Pvt Ltd, a company based in New Delhi, against the order of ITD, CPC, Bangalore. The appeal, registered as ITA No. 327/DEL/2021, pertains to the assessment year 2017-18. The primary issue was the disallowance of PF and ESI contributions deposited after the due date.
Senator Travels Pvt Ltd filed its return of income for the assessment year 2017-18 on 30th October 2017, declaring a total income of Rs. 18,92,090/-. The return was processed under section 143(1) of the Income Tax Act by the CPC, Bangalore, resulting in an adjustment of Rs. 1,34,148/- on account of late deposit of PF/ESI contributions, among other adjustments.
The dispute arose when the Assessing Officer (AO) disallowed the deduction for the employees’ contribution to PF/ESI that was deposited after the due date prescribed under the respective Acts. The assessee argued that the contributions were deposited before the filing of the return and should be allowed as a deduction.
The grounds of appeal raised by Senator Travels Pvt Ltd included:
The tribunal, comprising Shri Kul Bharat (Judicial Member), heard the case on 4th January 2022. The tribunal noted the following points:
In conclusion, the tribunal allowed the appeal filed by Senator Travels Pvt Ltd, directing the deletion of the disallowance made for the late deposit of PF/ESI contributions.
The order pronounced on 4th January 2022 by the tribunal concluded the appeal in favor of the appellant.
Order Pronounced in the Open Court on 04/01/2022.
Signed by:
(Kul Bharat) – Judicial Member
Date: 04/01/2022
Amit Kumar
Copy forwarded to:
Assistant Registrar, ITAT, New Delhi
ITA No. 327/DEL/2021 – Senator Travels Pvt Ltd vs ITD, CPC, Bangalore, Assessment Year 2017-18
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