ITA No. 1187/DEL/2022: Indaksh Solutions P.Ltd vs ITO – Allowed

ITA No. 1187/DEL/2022: A Detailed Analysis

In a significant ruling by the Income Tax Appellate Tribunal, Delhi Bench ‘G’, the case titled Indaksh Solutions P.Ltd vs Income Tax Officer, Ward-12(2), New Delhi, pertaining to the assessment year 2019-20, was judiciously analyzed and decided. The case, marked under case number ITA No. 1187/DEL/2022, saw Indaksh Solutions P.Ltd, based in New Delhi, appealing against the order passed by the Income Tax Officer of Ward-12(2), also in New Delhi. The notable judgment was delivered before Shri Challa Nagendra Prasad, Judicial Member, and Shri Pradip Kumar Kedia, Accountant Member of the tribunal.

The crux of the matter revolved around the disallowance made under Section 36(1)(va) of the Income Tax Act, 1961, concerning the employees’ contribution to ESI (Employees’ State Insurance) and PF (Provident Fund) deposited after the due date under the relevant acts but before the due date for filing the return of income under Section 139(1) of the Act. The tribunal examined various facets of the case including the amendments made by the Finance Act, 2021 to Sections 36 and 43B of the Income Tax Act and their retrospective applicability.

The judgment highlighted a profound analysis of precedent cases and the legal interpretation of the pertinent sections of the Income Tax Act. The tribunal, in delivering its conclusion, referred to multiple landmark decisions and authoritative texts on the matter, underscoring the importance of complying with statutory provisions regarding employee contributions to welfare funds.

In this landmark judgment, the appeal filed by Indaksh Solutions P.Ltd was allowed. The Tribunal clarified that the contributions towards employees’ PF and ESI deposited before the due date of filing the return of income under the Income Tax Act qualify for deductions, thus providing relief to the appellant. This decision carries significant implications for understanding the applicability of specific provisions related to employee welfare contributions within the ambit of the Income Tax Act.

The case serves as a pivotal reference for future disputes concerning similar issues, delineating a clear path for interpretation and understanding of the nuanced provisions under the Income Tax Act, particularly in relation to employees’ contributions to welfare funds.

ITA No. 1187/DEL/2022: Indaksh Solutions P.Ltd vs ITO – Allowed