This analysis provides a thorough review of ITA No.1822/DEL/2020, where Amandeep Singh Khurana appeals against the income tax assessment for the fiscal year 2018-19. This case highlights significant issues surrounding the delayed deposit of employee contributions to PF and ESI.
Amandeep Singh Khurana, an individual taxpayer, filed his return declaring an income for A.Y. 2018-19 which was later adjusted by the CPC, leading to additional tax demands. This appeal challenges these adjustments, particularly focusing on the treatment of delayed employee contributions under Section 36(1)(va) of the Income Tax Act.
The taxpayer’s appeal to the CIT(A) was dismissed, prompting a further appeal to the Tribunal. Key legal arguments include the timeliness of PF/ESI deposits and their impact on tax liabilities. The Tribunal’s decision referenced several precedents, including the favourable judgement from the Delhi High Court in the case of Pro Interactive Services (India) Pvt. Ltd.
The Tribunal, led by Sh. Anil Chaturvedi, ruled in favor of the taxpayer, allowing the appeal based on previous court decisions that supported the acceptance of employee contributions before the filing of tax returns, despite initial delays.
The case sets a significant precedent for how delayed employee contributions are treated under Indian tax law, impacting numerous similar cases. This document explores the intricacies of the Tribunal’s decision and its implications for both taxpayers and tax authorities.
Detailed Examination of ITA 1822/DEL/2020: Amandeep Singh Khurana’s Appeal on Employee Contributions
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