This document provides a thorough review of ITA No. 1827/DEL/2020, where Internet Export India LLP challenges the disallowance made by the Central Processing Centre (CPC) for the late deposit of employee contributions to PF and ESI during the assessment year 2018-19.
The case stems from a CPC decision under section 143(1) of the Income Tax Act, which disallowed a deduction claimed for employee contributions to PF and ESI that were deposited after the statutory due dates but before the tax return was filed. The CIT(A) upheld this disallowance, leading to an appeal by the assessee.
The appellant argued that the deductions for employee contributions should be allowed if payments were made before the tax return filing deadline, citing precedents set by the Delhi High Court in similar cases. The tribunal, influenced by these precedents, ruled in favor of the appellant, directing the AO to delete the disallowance.
The resolution of ITA No. 1827/DEL/2020 underscores the importance of judicial precedents in tax litigation concerning the timing of statutory payments versus tax filing deadlines. This analysis delves into the tribunal’s rationale and its implications for future tax compliance and litigation.
Detailed Review of ITA 1827/DEL/2020: Internet Export India LLP vs. DCIT, CPC, Bangalore
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