This document summarizes the proceedings and decision of the Income Tax Appellate Tribunal, Delhi Bench, in the case between Drishti Apparels and the Deputy Commissioner of Income Tax, Circle-29(1), Delhi, concerning the assessment year 2018-19.
The case involves the appellant, Drishti Apparels’s appeal against the order dated September 5, 2022, passed by the National Faceless Appeal Centre (NFAC), Delhi.
During the hearing, the main issue under discussion was the disallowance of deduction claims made by the appellant for employees’ contributions to Provident Fund (PF) and Employees’ State Insurance (ESI) which were not deposited within the due dates prescribed by relevant statutes. The Centralized Processing Centre (CPC) initially disallowed these deductions, which was confirmed by subsequent appeals.
The Tribunal, after reviewing submissions and available records, upheld the disallowance based on the precedent set by the Supreme Court in the case of Checkmate Services Pvt. Ltd. vs. CIT-I, which clarified that delayed deposits of employees’ contributions cannot be claimed as deductions even if these are made before the due date of filing the tax return.
The Tribunal’s decision emphasizes compliance with statutory deadlines for depositing employees’ contributions to PF and ESI to claim tax deductions. The case underscores the implications of the Supreme Court’s ruling on such matters.
Drishti Apparels vs. DCIT, Circle -29(1), Delhi – ITA 2552/DEL/2022 for Assessment Year 2018-19
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