The case between Aaloke Suri and DCIT, CPC Bengaluru, documented as ITA No. 1462/DEL/2021, centers on the disputed disallowance of delayed Provident Fund contributions during the 2018-19 assessment year.
The disagreement originates from the disallowance by the Assessing Officer (AO) of employees’ contributions to PF, which were deposited after the statutory due date but before the tax filing deadline. The main contention revolves around the interpretation of Sections 36(1)(va) and 43B of the Income Tax Act post-amendment by Finance Act 2021.
The tribunal reviewed various judicial precedents concerning the timing of PF contributions and their tax treatment. It emphasized the retrospective clarification provided by Finance Act 2021 amendments, which exclude certain delayed employee contributions from punitive disallowances under specific conditions.
The tribunal’s decision to allow the appeal reflects a nuanced interpretation of tax law, affirming that delayed PF contributions, if deposited before the income tax return filing deadline, should not attract disallowance. This case sets a precedent for similar disputes and highlights the importance of understanding legislative nuances in tax compliance.
The tribunal’s ruling in favor of Aaloke Suri against the DCIT, CPC Bengaluru provides significant insights into the handling of delayed employee contributions to PF, reinforcing the need for timely compliance while also acknowledging permissible exceptions under the law.
Aaloke Suri vs DCIT, CPC Bengaluru: Legal Battle Over Delayed PF Contributions – ITA 1462/DEL/2021
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