Case Number: ITA 1735/DEL/2020
Appellant: Aircon Engineers Private Limited, New Delhi
Respondent: ACIT Circle-1(2), New Delhi
Assessment Year: 2018-19
Case Filed On: 2020-10-19
Order Type: Final Tribunal Order
Date of Order: 2023-02-15
Pronounced On: 2023-02-15
The case involved Aircon Engineers Private Limited (the appellant) challenging the addition of Rs. 21,00,593 made by the Assessing Officer (AO) for late deposit of Employee’s Provident Fund (EPF) and Employee State Insurance (ESI) contributions. The addition was confirmed by the Commissioner of Income Tax (Appeals)-1, New Delhi. The appellant filed an appeal to the Income Tax Appellate Tribunal (ITAT) against this decision.
The primary issue was whether the late deposit of employee’s contributions towards EPF and ESI justified the addition made by the AO under Section 36(1)(va) of the Income Tax Act.
The ITAT considered the submissions from both parties and reviewed the case record. Key findings included:
The ITAT ruled in favor of the revenue and dismissed the appeal filed by Aircon Engineers Private Limited. The tribunal found that the AO was justified in disallowing the deductions for late deposits of EPF and ESI contributions, in line with the Supreme Court’s ruling in the case of Checkmate Services P. Ltd.
This case highlights the importance of timely deposits of statutory dues like EPF and ESI contributions and underscores the judiciary’s stance on strict compliance with statutory deadlines. The decision reinforces the principle that late deposits, even if made before the filing of the income tax return, do not qualify for deductions if not made within the statutory due dates.
Order pronounced in the open court on 15/02/2023 by Judicial Member C.M. Garg and Accountant Member Dr. B.R.R. Kumar.
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