This article provides a comprehensive review of the ITAT Delhi case between Hawa Singh and ITO Ward-62 (1), Delhi for the assessment year 2018-19. The appeal addresses multiple fiscal grievances including the correctness of statutory disallowances and procedural aspects of the tax assessment.
Hawa Singh faced multiple adjustments by the Centralized Processing Center (CPC), Bengaluru related to late payments contributing to PF & ESI which were carried forward to the assessment year 2018-19. The adjustments were initially confirmed by the CIT(A) leading to further escalation to the ITAT.
The appellant contended erroneous disallowances amounting to over 15 million INR pertaining to late deposits of ESI, PF, and taxes including VAT and GST. Notable among the issues was the application of Section 36(1)(va) and Section 43B of the Income Tax Act, disputing the timeline and legality of the payments made.
The Tribunal, led by Shri Kul Bharat, carefully considered the submissions from both sides. The primary legal contention revolved around the timeliness of the appellant’s contributions towards employee welfare funds and tax liabilities. The Tribunal referenced the pivotal Supreme Court decision in Checkmate Services P.Ltd. vs CIT-A, which set precedents on similar issues.
The Tribunal decided to remand the matter back to the AO for thorough verification of the facts, especially the dates and amounts related to the deposits of PF & ESI. This decision allows for a reevaluation of the case in light of the Supreme Court’s guidelines, offering a fair chance for the appellant to substantiate the claims.
This case highlights the complexities involved in handling statutory dues and the importance of maintaining accurate records to avoid fiscal penalties. The outcome serves as a significant reference for taxpayers on the procedural necessities for contesting tax adjustments.
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