Case Number: ITA 1304/DEL/2021
Appellant: Jain Industrial Products, Haryana
Respondent: DCIT, CPC, Bangalore
Assessment Year: 2019-20
Case Filed On: 2021-10-04
Order Type: Final Tribunal Order
Date of Order: 2022-05-18
Pronounced On: 2022-05-18
The appeal by Jain Industrial Products was against the decision made by the DCIT, CPC, Bangalore regarding the disallowance of employee contributions to Provident Fund (PF) and Employee State Insurance (ESI) due to late deposits, despite these being made before the due date of filing the Income Tax Return (ITR).
The main contention in the appeal was the incorrect disallowance of late deposits for PF/ESI contributions. The ITAT focused on whether such contributions, if deposited before the ITR filing deadline, should still be subject to penalties or adjustments, particularly in light of recent legislative changes.
During the proceedings, the tribunal referenced multiple judicial precedents that supported the appellant’s position that delayed PF/ESI contributions, if deposited before the ITR due date, should not be disallowed. Significant among the references were the rulings in the case of ‘Azamgarh Steel & Power vs. CPC’ and ‘CIT vs. AIMIL Ltd.’, which underpinned the tribunal’s decision.
The ITAT ruled in favor of the appellant, Jain Industrial Products, setting aside the disallowance made by the DCIT. This case highlights the importance of understanding the nuances of tax regulations concerning employee contributions and the timing of their deposits. It also sheds light on the evolving interpretations of tax laws, especially with regard to recent amendments.
Order pronounced in the open court on 18/05/2022.
Judicial Member: Shri Kul Bharat
Accountant Member: Shri Pradip Kumar Kedia
Order Dated: 18/05/2022
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