Introduction
This case analysis pertains to the Income Tax Appellate Tribunal’s decision regarding ITA No. 1010/DEL/2022 between Sempitern India, Faridabad, and Ward 2(3), Faridabad for the assessment year 2019-20. The core issue revolves around the correctness of the addition made under section 143 (1) of the Income-tax Act, 1961, concerning PF & ESI contributions by employees paid beyond the statutory period but before the due date of filing the return under section 139 (1).
Background
The appellant, Sempitern India, is a firm based in Faridabad, Haryana, contested against the order of the ACIT, Ward 2(3), Faridabad regarding the addition made to their income for the assessment year 2019-20. The matter came before the Delhi Bench ‘G’ of the Income Tax Appellate Tribunal, comprising Honorable Mr. Shamim Yahya, Accountant Member, and Mr. Challa Nagendra Prasad, Judicial Member.
The tribunal examined the appeals filed by different assessees against the orders of ld. CIT (Appeals)-8 for the concerned assessment years. Given the commonality of the issues across the appeals, a collective order was issued.
Key Issue and Tribunal Decision
The crux of the matter was the timing of PF & ESI contributions by the employees, and whether payments made beyond the specified dates in the respective statutes but before the due date for filing return under section 139(1) should impact the taxable income. Drawing on …
