Analysis of ITA No. 1550/DEL/2021 involving Hind Securities Services and House Keeping, Delhi, against the ITO, Ward-28(5), Delhi. This case pertains to the assessment year 2017-18 and focuses on issues related to the delayed deposit of PF and ESI contributions.
The appellant, Hind Securities Services and House Keeping, faced scrutiny from the Income Tax Department over the timeliness of deposits made for employees’ PF and ESI contributions. The main legal contention centers around whether these delayed payments justify disallowances under section 36(1)(va) of the Income Tax Act.
The tribunal examined various precedents, including the pivotal judgement of the Delhi High Court in similar cases, which generally support the taxpayer provided the contributions are completed before the tax filing deadline. The decision discusses the implications of recent amendments to tax laws, particularly those introduced in the Finance Act, 2021, which clarify the handling of such delayed contributions.
The tribunal’s decision in favor of Hind Securities Services and House Keeping highlights the judiciary’s approach to encouraging compliance without harsh penalties for procedural delays. It also sheds light on the evolving interpretation of tax laws concerning employee contributions to welfare funds.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform