The case between Rambir Singh of DADA Chhattarpal Enterprises and the Income Tax Officer, Ward-5, Rohtak, was brought before the Delhi Bench ‘SMC’ of the Income Tax Appellate Tribunal. This case, filed under ITA No.2397/DEL/2022 for the assessment year 2019-20, was presided over by Judicial Member Sh. Chandra Mohan Garg and Accountant Member Sh. Pradip Kumar Kedia.
Filed on September 28, 2022, with a decision pronounced on August 9, 2023, the key issue revolves around the disallowance of employee contributions to Provident Fund (PF) and Employee State Insurance (ESIC) under Section 36(i)(va) read with Section 43B of the Income Tax Act, 1961. The tribunal delved deep into the nuances of timely payment requirements and the implications of late contributions on tax deductions.
The case was notably influenced by prior judgments, particularly the Supreme Conservations Services P Ltd. vs. CIT regarding the taxability of belated employee contributions. The tribunal’s decision to refer the matter back for factual verification underlines the complexity of compliance issues and the significance of accurate timing in contributions relative to salary disbursements.
The detailed legal analysis presented by the tribunal underscores ongoing debates in judicial interpretation, with significant implications for employers and their compliance strategies with employee benefit schemes under Indian tax law.
Dispute Over PF and ESIC Contributions: Rambir Singh vs. ITO, Rohtak
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