Case Number: ITA 1589/DEL/2021
Appellant: Indian Plastics and Laminates Ltd., New Delhi
Respondent: CIT(A) NFAC, New Delhi
Assessment Year: 2019-20
Case Filed on: 2021-10-29
Order Type: Final Tribunal Order
Date of Order: 2022-02-23
Pronounced on: 2022-02-23
In the matter of Indian Plastics and Laminates Ltd. versus CIT NFAC, the appeal was filed by Indian Plastics and Laminates Ltd. challenging the disallowance of expenses for delayed Employee State Insurance (ESI) and Provident Fund (PF) deposits by the Assessing Officer (AO) for the assessment year 2019-20. The appellant argued that the contributions were made before the due date of filing the income tax return and should be allowed as expenses under Section 43B of the Income Tax Act, 1961.
The case was heard before the Delhi “SMC” Bench of the Income Tax Appellate Tribunal, consisting of Judicial Member Shri Kul Bharat. The appeal was taken up for hearing and the decision was pronounced on February 23, 2022.
The appellant, represented by Shri Rajeshwar Prasad Painuly, CA, raised the following grounds of appeal:
The respondent’s representative, Sr. DR Shri Sanjay Kumar, supported the decision of the lower authorities and argued that the law is clear regarding the disallowance of expenses due to delayed deposits.
After considering the submissions and reviewing the material on record, the tribunal made the following observations:
Based on these observations, the tribunal directed the AO to delete the disallowance and allowed the appeal filed by Indian Plastics and Laminates Ltd.
The tribunal allowed the appeal filed by Indian Plastics and Laminates Ltd., directing the AO to delete the disallowance made for the assessment year 2019-20. The order was pronounced in the open court on February 23, 2022.
Order:
In the result, the appeal of Indian Plastics and Laminates Ltd. is allowed.
Order pronounced in the open Court on February 23, 2022.
—
(KUL BHARAT)
JUDICIAL MEMBER
Date: February 23, 2022
Indian Plastics and Laminates Ltd. vs CIT NFAC: Delay in ESI and EPF Deposit for AY 2019-20
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