Case Number: ITA 1772/DEL/2020
Appellant: Vikas Publishing House Pvt. Ltd., New Delhi
Respondent: DCIT CPC, Bengaluru
Assessment Year: 2018-19
Case Filed On: 2020-10-26
Order Type: Final Tribunal Order
Date of Order: 2022-08-01
Pronounced On: 2022-08-01
This case addresses the deductions related to Employee State Insurance (ESI) and Provident Fund (PF) payments, which are pivotal for both employer and employee financial responsibilities under the Income Tax Act.
The appeal by Vikas Publishing House Pvt. Ltd. was directed against the order of the learned CIT(A)-30, New Delhi, dated 23.01.2020, regarding discrepancies in ESI and PF deductions. The tribunal reviewed similar cases and consolidated them for a common order due to the identical nature of the issues concerning ESI and PF payments.
The tribunal’s decision was influenced by a series of precedents and the amendments in the Income Tax Act as outlined by the Finance Act 2021. It was adjudicated that the employees’ contributions to PF and ESI, if paid before the due date of filing the Income Tax Return under section 139(1), should be allowed as a deduction and no disallowance could be made.
This ruling aligns with previous decisions by various tribunals and courts, ensuring that compliance with the stipulated timelines for these contributions is met to maintain the integrity of employee welfare measures.
The final judgment was pronounced in the open court on the 1st of August, 2022, where the tribunal accepted the appellant’s arguments, leading to a favorable decision for Vikas Publishing House Pvt. Ltd.
This case underscores the importance of adherence to statutory deadlines for depositing ESI and PF contributions and clarifies the legal stance on the deductibility of these payments. It provides a clear precedent for other similar cases and ensures that employers are aware of their obligations and the legal implications of late payments.
By resolving this appeal favorably, the tribunal has reinforced the legislative intent behind these deductions, promoting timely compliance to benefit employee welfare.
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