This article reviews the Income Tax Appellate Tribunal’s decision in the case of Jagbir Singh Tewatia vs. ACIT for the assessment year 2019-20, which addresses the timely deposit of employee contributions towards provident fund (PF) and employee state insurance (ESI).
Jagbir Singh Tewatia appealed against the order of the Commissioner of Income-tax (Appeals), which confirmed the addition made by the Assessing Officer. The main contention was the timing of the deposits made towards employee contributions to PF and ESI.
The tribunal examined whether the deposits made after the due dates specified under the relevant acts but before the due date for filing the return of income comply with the provisions of Section 143(1) of the Income Tax Act, 1961. This analysis includes a detailed review of the tribunal’s interpretation of legal precedents and statutory provisions.
The decision was heavily influenced by the Supreme Court’s ruling in the case of Checkmate Services Pvt. Ltd., which set a precedent on similar issues. The implications of this ruling for the case and broader legal practices regarding employee contributions are discussed extensively.
The article concludes with a summary of the tribunal’s decision and its implications for both taxpayers and practitioners, emphasizing the importance of adherence to statutory timelines for depositing employee contributions.
Jagbir Singh Tewatia vs. ACIT: Analysis of ITAT Decision for AY 2019-20
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