The case ITA 1690/DEL/2021 involves Shiv Pratap Singh Kunwar from Meerut, who challenged the disallowance of employee contributions by the Assessing Officer for the assessment year 2017-18. This dispute was presented at the Delhi Bench ‘G’ of the Income Tax Appellate Tribunal.
The main issue in the case was the disallowance of contributions towards Provident Fund (PF) and Employee State Insurance (ESI), which were deemed delayed by the Assessing Officer. The appellant argued that these contributions were made before the due date of filing the income tax return, countering the initial assessment made by the tax authorities.
During the proceedings, both the Judicial Member, Shri Kul Bharat, and the Accountant Member, Shri Pradip Kumar Kedia, heard the case. The appellant presented arguments emphasizing the timely deposit of contributions, which, according to him, should exempt him from disallowance under the Income-tax Act.
The Tribunal decided in favor of Shiv Pratap Singh Kunwar, directing the removal of the disallowance and critiquing the oversight by the initial assessing officer. The judgment reinforced the importance of adhering to the statutory provisions for the timing of employee contributions.
This case sets a significant precedent on how delays in employee contributions are treated under tax law, particularly regarding the timing and proof of payments. It provides valuable insights for other taxpayers facing similar disallowances.
The resolution of ITA 1690/DEL/2021 helps clarify the procedural aspects of employee contributions under tax assessments, offering guidance for both taxpayers and tax practitioners in handling similar disputes.
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