Dismissal of Creative Arts Education Society’s Appeal Against Late PF/ESIC Deposit Disallowance for AY 2018-19 – ITA 1048/DEL/2022

Dismissal of Creative Arts Education Society’s Appeal Against Late PF/ESIC Deposit Disallowance for AY 2018-19 – ITA 1048/DEL/2022

In a noteworthy decision by the Income Tax Appellate Tribunal, Delhi Bench, the appeal filed by Creative Arts Education Society, Delhi, against the disallowance of late deposits towards Provident Fund/ESIC for the Assessment Year 2018-19 has been dismissed. The case, denoted as ITA No. 1048/DEL/2022, saw the tribunal reinforcing the principles surrounding the taxability of belated employee contributions, a contentious issue in tax disputes.

Background of the Case

Creative Arts Education Society, a prominent educational institution based in South West Delhi, found itself entangled in a tax dispute arising out of the late deposit of employees’ contributions towards Provident Fund and ESIC. Following an intimation order passed under section 154 of the Income Tax Act, 1961, concerning the Assessment Year 2018-19, the assessee challenged the disallowance made by the Central Processing Centre (CPC), Bangalore.

The contention revolved around a significant sum of Rs. 56,92634/- disallowed due to the late deposition of said contributions despite making the payments before the due date for furnishing of return of income under Section 139(1) of the Act.

Proceedings and Argumentation

The proceedings took an interesting …

Dismissal of Creative Arts Education Society’s Appeal Against Late PF/ESIC Deposit Disallowance for AY 2018-19 – ITA 1048/DEL/2022