This article explores the tribunal proceedings and outcomes of the case between P AND G ENTERPRISES PRIVATE LIMITED and ADIT CPC, Bangalore regarding the compliance issues related to EPF and ESI contributions for the assessment year 2019-20.
The case delves into the complexities surrounding the timely deposit of employee contributions to welfare funds, scrutinized under the amendments to the Finance Act 2021, and the associated legal precedents.
Both parties presented their arguments focusing on the application of section 36(1)(va) of the Income Tax Act and the implications of late payments beyond the stipulated periods under respective welfare fund acts.
The tribunal provided a comprehensive analysis on the admissibility of deductions for contributions made after the due date but before the filing of the income tax return, aligning with the legislative amendments.
This decision is significant for corporates in managing compliance with employee welfare contributions, clarifying the legal stance on deductions related to EPF and ESI payments.
The tribunal’s decision in ITA 756/DEL/2021 serves as a pivotal reference for tax professionals and corporate entities, underlining the importance of adhering to statutory deadlines for employee contributions to welfare funds.
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