On September 21, 2022, the Income Tax Appellate Tribunal of Delhi Bench ‘G’ delivered a final order in case number ITA 2076/DEL/2022. The case involved an appeal by the ITO, Ward-4(1), Gurgaon, against Sandeep Sandha concerning the delayed deposits of employees’ contributions to EPF and ESIC for the assessment years 2017-18, 2019-20, and 2020-21. The main issue was whether the late deposit of employee contributions to provident funds and social security under Sections 36(1)(va) and 2(24)(x) of the Income Tax Act was allowable.
The Tribunal, consisting of Judicial Member Shri Chandra Mohan Garg and Accountant Member Shri Pradip Kumar Kedia, heard the arguments. The ITO challenged the order of the Commissioner of Income Tax Appeals, which had reversed the earlier disallowance made by the Assessing Officer. The CIT(A) had found that the contributions were indeed deposited before the due date of filing the return of income under Section 139(1), thus meeting the statutory requirements.
Referencing precedent from the Delhi High Court and citing legislative changes effective from AY 2021-22, the Tribunal found that the assessee’s actions were in compliance with the law. Consequently, the Tribunal dismissed the Revenue’s appeal, upholding the CIT(A)’s decision. This judgment underscores the critical nature of timely financial compliance and its implications for tax assessments under Indian law.
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