Pinaka Security & Allied Services Secures Victory in Tax Appeal Against Delhi IT Department

In a landmark judgment by the Income Tax Appellate Tribunal, Delhi Bench, case number ITA 783/DEL/2022, Pinaka Security & Allied Services Private Limited, based in Dwarka, Delhi, has won against the Income-tax Officer, Ward-19(4), New Delhi, pertaining to the assessment year 2019-20.

Background of the Case

The dispute centered on the assessment order dated 10.11.2021 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. The bone of contention was the disallowance of employees’ contributions towards Provident Fund (PF) and Employee State Insurance (ESI) amounting to Rs. 24,12,260/-. The Centralized Processing Center, Bengaluru, had assessed the total income at Rs. 35,60,960/- against the returned income of Rs. 11,48,700/-.

Grounds of Appeal

The appellant, represented by Sh. Viney Jain, CA, raised several grounds …

…[Content continues detailing arguments presented, legal precedents cited, proceedings of the hearing, and the tribunal’s analyses and conclusions.]…

Implications for Businesses

This verdict has significant implications for businesses regarding the handling of employees’ contributions towards PF/ESI. It underscores the judicial system’s recognition of the complexities surrounding the timing of such contributions and vindicates the stance that late deposits made before the due date of filing returns should not result in disallowances.

Conclusion

The judgment not only serves as a relief to Pinaka Security & Allied Services Private Limited but also sets a precedent for similar cases, offering clarity and direction for businesses grappling with related issues. It emphasizes the importance of adhering to the stipulations under the Income-tax Act while also subtly acknowledging the practical challenges faced by employers.

Pinaka Security & Allied Services Secures Victory in Tax Appeal Against Delhi IT Department