Technico Industries Limited faced issues with delayed PF and ESI deposits against the orders from the CPC, Bengaluru for the assessment year 2018-19. The case was brought to the Income Tax Appellate Tribunal, Delhi Bench ‘G’.
The appeal by Technico Industries was one among multiple cases involving similar issues of delayed PF and ESI contributions. The tribunal consolidated these cases to streamline the proceedings and address the common legal questions raised.
Technico Industries argued that despite the delays, all contributions were made before the income tax return filing deadline, aligning with previous judgments favoring the assessee in similar circumstances. The tribunal, agreeing with Technico, cited several precedents, notably the High Court of Delhi’s decisions, which emphasized that contributions made before the return filing due date should not result in penalties or disallowances.
The decision reaffirmed the principle that timely rectification of contribution delays, before filing tax returns, complies with tax laws, potentially sparing businesses from punitive measures for initial delays. This case serves as a critical reference for businesses and tax professionals dealing with payroll compliance issues.
The tribunal’s decision in favor of Technico Industries Limited adds to the jurisprudence surrounding employee contribution timings under the Income Tax Act. This judgment provides clarity and reassurance to other entities in similar predicaments.
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