This case summary outlines the ITAT proceedings and final judgment for the case between Savleen Kaur and the Income Tax Officer (ITO) of Ward-54 (4), Delhi, for the assessment year 2018-19.
The appellant, Savleen Kaur, filed an appeal against the order of the National Faceless Appeal Centre (NFAC), which pertained to the delayed deposit of employees’ contributions to ESI and PF. The appeal addresses whether these delays justify disallowances under the Income Tax Act, 1961.
The Tribunal reviewed the case alongside similar appeals, deciding them collectively due to the common issues involved. The primary contention revolved around the disallowance made for contributions to ESI/PF deposited after the due date stipulated under respective acts. The case references the Supreme Court’s decision in Checkmate Services Pvt Ltd, which firmly establishes the non-deductibility of such delayed contributions.
The Tribunal’s judgment confirmed the disallowance of these contributions, aligning with previous Supreme Court rulings that emphasized the necessity of adhering to statutory timelines for depositing employees’ contributions to ensure their deductibility.
This decision underlines the strict compliance required with contribution deadlines under the PF and ESI Acts. It emphasizes that any delay, regardless of subsequent correction before tax return filings, does not warrant the allowance of such contributions as deductions under the Income Tax Act. The judgment serves as a cautionary tale for all employers on the importance of timely compliance with employee contribution deposits.
The ITAT’s ruling in favor of the ITO against Savleen Kaur for the assessment year 2018-19 reinforces the legal framework that mandates strict adherence to contribution deadlines under the employee welfare fund regulations. This case highlights the critical nature of compliance to avoid legal repercussions and financial liabilities.
Savleen Kaur vs ITO, Ward-54 (4), Delhi – Assessment Year 2018-19 Case Summary
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