This case involves B4S Solution Pvt. Ltd., a company based in Ghaziabad, which faced issues related to the disallowance of employee’s contributions to ESI/PF. The appellant contested the decision made by the ld. Commissioner of Income Tax (Appeals)-26, New Delhi, which was upheld by the ITAT, Delhi in ITA No. 2187/DEL/2022.
The dispute centers on the disallowance under Section 36(i)(va) of the Income Tax Act, concerning employee’s contributions to provident funds that were not deposited by the statutory due dates. The contributions amounted to Rs.4,14,88,980. The ITAT decision referenced various precedents and statutory provisions, emphasizing the strict requirements for timely deposit of employee contributions to avail tax deductions.
Case Number: ITA 2187/DEL/2022
Appellant: B4S Solution Pvt. Ltd., Ghaziabad
Respondent: ACIT, Circle 4(2), New Delhi
Assessment Year: 2018-19
Order Type: Final Tribunal Order
Date of Order: 2023-02-06
Pronouncement Date: 2023-02-06
The tribunal’s order meticulously details the legal stance and the judicial precedents affecting the case. Notably, the Supreme Court’s rulings are frequently cited, reinforcing the necessity for compliance with statutory timelines for depositing employee contributions. The judgment discusses the implications of Sections 36(i)(va) and the related legal provisions that govern the treatment of such contributions.
The ITAT upheld the decision of the CIT(A), confirming the disallowance due to non-compliance with the stipulated timelines for depositing employee contributions. This case serves as a critical reminder of the rigorous enforcement of tax laws and the importance of adhering to statutory deadlines.
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