Analysis of ITA No. 1552/DEL/2021 concerning Hind Securities Services and House Keeping, Delhi, versus the ITO, Ward-28(5), Delhi for the assessment year 2019-20, focused on the delayed deposit of PF and ESI contributions.
The appellant, Hind Securities Services and House Keeping, dealt with tax implications due to delays in depositing employees’ PF and ESI contributions. The primary legal challenge was whether such delays could justify disallowances under section 36(1)(va) of the Income Tax Act, despite eventual compliance before the tax filing deadline.
The tribunal reviewed precedents, particularly noting the stance of the Delhi High Court, which generally supported the taxpayer provided contributions were made before the tax filing deadline. Discussions also covered the impact of amendments in the Finance Act, 2021, which clarified aspects of such contributions.
This judgment underlines the importance of compliance timelines in tax law, emphasizing a balanced approach to enforcing tax law without overly penalizing procedural delays, provided they are rectified within the fiscal period. The decision is pivotal for firms managing large-scale payroll and tax obligations.
Hind Securities Services and House Keeping vs ITO on Delay in PF and ESI Deposits: ITA 1552/DEL/2021
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