Anemo Prime (P) Ltd., based in New Delhi, appealed against the adjustments made by the ADIT, CPC, Bengaluru concerning delayed PF and ESI contributions for the assessment year 2019-20. The case was heard by the Income Tax Appellate Tribunal, Delhi Bench ‘G’.
The core issue in ITA 1691/DEL/2021 revolved around the delay in depositing employee contributions to Provident Fund (PF) and Employee State Insurance (ESI). The adjustments were challenged by Anemo Prime, arguing that contributions were completed before the return filing, thus should not attract penalties or adjustments.
The tribunal examined similar precedents and the legislative intent behind the penalties for delayed contributions. Citing favorable judgments and the specific circumstances of the case, the tribunal sided with Anemo Prime, directing the removal of the disallowance.
The decision underscored the tribunal’s approach to handling delays in statutory contributions based on technicalities and substantial compliance. The case serves as a reference point for similar disputes, emphasizing the importance of timely compliance and accurate representation during assessments.
The outcome of ITA 1691/DEL/2021 highlights the critical aspects of handling PF and ESI contributions within the stipulated timelines and their implications on corporate tax assessments.
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