This document presents a comprehensive analysis of the ITA No. 1670/DEL/2021 case involving Om Prakash & Sons from Faridabad, which contested the tax authorities’ decision for the assessment year 2018-19. The appeal focuses on the disputed additions made by the tax department regarding the delayed payment of employee contributions to Provident Fund (PF) and Employee State Insurance (ESI).
The case stems from the Central Processing Centre (CPC), Bangalore’s assessment, where it was determined that the employee contributions towards PF and ESI were not deposited within the due dates as stipulated by their respective Acts. As a result, an addition was made to the assessed income, which Om Prakash & Sons appealed against.
The appeal was brought before the Income Tax Appellate Tribunal, Delhi Bench, where the firm contested the additions based on judicial precedents that favor the taxpayer in similar circumstances. The Tribunal’s deliberations considered various precedents, including those set by the Delhi High Court, which have influenced similar cases significantly.
The Tribunal sided with Om Prakash & Sons, directing the removal of the additional tax imposed due to the delayed payments. This decision was influenced by higher judicial rulings which clarified that such contributions, if paid before the due date of tax filing, should not attract penalties or additional tax assessments.
The Tribunal’s decision in favor of Om Prakash & Sons underlines the ongoing interpretation challenges in tax law, particularly concerning the timeliness of employee contributions to welfare funds. This case will serve as a reference for similar disputes, highlighting the importance of adhering to judicial precedents and interpretations in tax law.
Analysis of ITA 1670/DEL/2021: Om Prakash & Sons vs. ITO, Ward-1(1), Faridabad
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