Case Number: ITA 1301/DEL/2021
Appellant: Pooja Metal Processors Private Limited, Faridabad
Respondent: Deputy Commissioner of Income Tax, Bangalore
Assessment Year: 2018-2019
Case Filed On: 2021-10-04
Order Type: Final Tribunal Order
Date of Order: 2023-05-19
Pronounced On: 2023-05-19
Pooja Metal Processors Pvt Ltd appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which confirmed the disallowance made by the Assessing Officer regarding employee contributions to Provident Fund (PF) and Employees’ State Insurance (ESI) deposited after the due dates prescribed by the respective acts but before the due date for filing income tax returns.
The core of the dispute was whether the late contributions should be allowed as deductions under the Income Tax Act. The Tribunal noted that this issue had been settled by the Supreme Court in the case of Checkmate Services Pvt. Ltd vs CIT, which concluded that such contributions, if not deposited by the statutory due dates under PF and ESI Acts, cannot be allowed as deductions, even if deposited before the tax return filing deadline. The Tribunal followed this precedent, denying the deductions claimed by the assessee.
The ITAT’s decision reinforces strict compliance with statutory due dates for depositing employee contributions to PF and ESI. It highlights the importance of timely compliance to avail tax deductions under the Income Tax Act, aligning with the Supreme Court’s interpretation. The appeal of Pooja Metal Processors was partly allowed with respect to another claim related to the gain on sale of fixed assets, which was decided in favor of the assessee.
Order pronounced in the open court on 19/05/2023.
Judicial Member: Shaktijit Dey
Accountant Member: M. Balaganesh
Order Dated: 19/05/2023
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