Case Number: ITA 1284/DEL/2021
Appellant: Narender Singh Gahlaut, Delhi
Respondent: ITD, CPC, Bengaluru
Assessment Year: 2018-19
Case Filed on: 2021-09-30
Order Type: Final Tribunal Order
Date of Order: 2022-07-29
Pronounced on: 2022-07-29
In the case of Narender Singh Gahlaut vs. ITD, CPC, Bengaluru, the appellant, Narender Singh Gahlaut, challenged the disallowance of PF and ESI contributions made by the Central Processing Centre (CPC), Bengaluru. The disallowance was upheld by the learned CIT(A), National Faceless Appeal Centre, Delhi, prompting the appellant to bring the matter before the Income Tax Appellate Tribunal, Delhi Bench ‘G’, presided over by Accountant Member Shri Anil Chaturvedi and Judicial Member Shri Anubhav Sharma.
The dispute arose when the CPC processed Narender Singh Gahlaut’s return of income for the assessment year 2018-19 and disallowed a deduction of Rs. 7,34,753/- on account of late payment of employee contributions to ESI and PF. The appellant argued that the contributions were made before the due date of filing the return under Section 139(1) of the Income Tax Act, 1961, and thus should not be disallowed.
The appellant raised the following grounds:
After considering the arguments from both parties, the Tribunal found that the appellant had deposited the employee contributions to PF and ESI before the due date of filing the return, though after the dates specified in the relevant Acts. The Tribunal cited several decisions supporting the appellant’s claim, including:
The Tribunal noted that the amendment to Section 43B and Section 36(1)(va) by the Finance Act, 2021, is prospective and applicable from 01.04.2021. Since the appellant deposited the contributions before the due date of filing the return for the assessment year 2018-19, the disallowance was not justified.
The Tribunal allowed the appeal, directing the Assessing Officer to delete the disallowance in the hands of the appellant. The final judgment was pronounced in the open court on 29/07/2022.
Order:
In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 29/07/2022.
Signed:
Anil Chaturvedi
Accountant Member
Anubhav Sharma
Judicial Member
Dated: 29/07/2022
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