Case Number: ITA 957/DEL/2021
Appellant: APT Services Group, Delhi
Respondent: DCIT, CPC, Bengaluru
Assessment Year: 2018-19
Result: 2018-19
Case Filed on: 2021-08-10
Order Type: Final Tribunal Order
Date of Order: 2022-05-20
Pronounced on: 2022-05-20
Tribunal: IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH “SMC”, NEW DELHI
Before: Shri Kul Bharat, Judicial Member
Introduction
This appeal was filed by APT Services Group against the order of the learned Commissioner of Income-tax (Appeals)-12, New Delhi, dated 14.08.2020, pertaining to the assessment year 2018-19. The case was heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench “SMC”, on 10.05.2022 and pronounced on 20.05.2022.
Background
APT Services Group, based in Azadpur, Delhi, contested the disallowance of EPF and ESI contributions by the DCIT, CPC, Bengaluru. The Centralized Processing Center (CPC), Bengaluru, had made adjustments disallowing employees’ contribution towards EPF and ESI amounting to Rs. 21,18,225/-, thereby assessing the total income of the appellant at Rs. 31,09,590/- against the returned income of Rs. 9,91,370/-.
Key Issues and Arguments
The primary issue raised by the appellant was the disallowance of EPF and ESI contributions on the grounds that these contributions were not deposited within the time stipulated under the respective Acts. The appellant contended that the contributions were deposited before the due date for filing the return. The appellant relied on the judgments of the Hon’ble Delhi High Court in the cases of CIT vs. Dharmendra Sharma, CIT vs. AIMIL Ltd., and M/s Pro Interactive Services (India) Pvt. Ltd.
Tribunal’s Analysis and Findings
The tribunal noted the reliance placed by the appellant on the judgments of the Hon’ble Delhi High Court. The key judgments cited were:
In light of these judgments, the tribunal found merit in the appellant’s contention and held that the issue of employees’ contribution towards EPF and ESI is covered in favor of the appellant by the cited judgments.
Conclusion
The appeal filed by APT Services Group was allowed. The disallowance of Rs. 21,18,225/- on account of delayed payment towards ESI and EPF was deleted, and the income was assessed as per the returned income of Rs. 9,91,370/-.
Final Judgment
Order pronounced in the open court on 20.05.2022.
Signed:
Shri Kul Bharat, Judicial Member
Dated: 20.05.2022
Copy forwarded to:
Assistant Registrar, ITAT, New Delhi
Relevant Legal Provisions and Precedents
This case centered around the procedural aspects of filing and withdrawing an appeal before the Income Tax Appellate Tribunal. The appellant exercised the right to contest the disallowance of EPF and ESI contributions, which the tribunal acknowledged and processed accordingly based on binding precedents.
Impact of the Judgment
This judgment highlights the importance of adhering to legal precedents in tax litigation. It underscores the tribunal’s role in ensuring that such disallowances are contested and resolved in favor of the appellant when supported by binding judgments.
Key Takeaways
The case illustrates the process and implications of contesting disallowances in tax litigation. It emphasizes the importance of procedural adherence and the tribunal’s role in facilitating the resolution of disputes based on legal precedents.
APT Services Group vs DCIT: Disallowance of EPF and ESI for AY 2018-19
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