An in-depth analysis of ITA No. 1549/DEL/2021, a legal challenge involving Mohammed Darus Salam and the Income Tax Officer of Ward-36(4), Delhi. The case addresses the assessment year 2019-20 and revolves around the delayed payments of employee contributions to Provident Fund (PF) and Employee State Insurance (ESI).
The appeal was lodged against the order of the CIT(A), National Faceless Appeal Centre, which sustained an intimation issued under Section 143(1) by the ADIT, CPC, Bangalore. The primary dispute concerns the disallowance of Rs. 12,09,210, claimed as deductions under Section 36(1)(va) for PF contributions delayed by the appellant.
The tribunal’s decision referenced several key judgments, including the Delhi High Court’s stance in similar cases, which favor the taxpayer if contributions are completed before the tax filing deadline. The case highlights issues related to the application of amendments made by the Finance Act, 2021, and discusses the prospective nature of legal amendments affecting tax assessments.
This case serves as a significant precedent for similar cases involving delayed PF and ESI payments. It underscores the importance of understanding the timing of such contributions in relation to tax filing deadlines and the impact of legislative changes on the interpretation of tax laws.
Mohammed Darus Salam vs ITO on Delayed PF and ESI Payments: A Detailed Look at ITA No. 1549/DEL/2021
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