Harish Chander from Haryana challenged the disallowance decisions made by ADIT, CPC Bengaluru regarding delayed Provident Fund (PF) and Employee State Insurance (ESI) contributions for the fiscal year 2018-2019 under case ITA 1436/DEL/2021. This case provides a significant interpretation of legislative changes affecting taxpayer liabilities for delayed contributions.
The primary concern was the treatment of PF and ESI contributions that were paid after the stipulated deadlines but before the tax filing due date. The appellant argued against the penalties imposed for these delays, citing recent legislative amendments and judicial decisions that might impact such cases.
The Income Tax Appellate Tribunal (ITAT) reviewed various precedents and the amendments introduced by the Finance Act, 2021. These legislative changes were pivotal in deciding whether such late payments should attract penalties or if leniency could be considered based on the circumstances presented.
The ITAT ruled in favor of Harish Chander, highlighting that all payments were made before the income tax return filing deadline, thus not warranting any penalties. This decision underscores the nuances of tax law where legislative intent plays a critical role in interpretation and enforcement.
Order Date: 2022-05-18
Judges: Shri Kul Bharat, Judicial Member and Shri Pradip Kumar Kedia, Accountant Member
Legal Analysis: Harish Chander vs. ADIT on Delayed Employee Contributions – ITA 1436/DEL/2021
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform