Appellant: Rajnar Facilities Private Ltd., Gurgaon (Haryana)
Respondent: DCIT, CPC Bengaluru, Bengaluru (Karnataka)
Assessment Year: 2019-2020
Case Filed On: 2021-10-21
Order Type: Final Tribunal Order
Date of Order: 2022-02-28
Pronounced On: 2022-02-28
Final Judgment:
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘G’, NEW DELHI
Before Sh. Saktijit Dey, Judicial Member and Dr. B. R. R. Kumar, Accountant Member (Through Video Conferencing)
Order:
The issue at hand deals with the allowability of contributions received from employees towards ESI and PF under Section 36(1)(va) of the Income Tax Act, 1961. The DCIT/ACIT/ITD, CPC, Bengaluru had disallowed the contributions on account of delay in depositing the employee’s contributions. The Revenue argued that these amounts were paid beyond the due dates as prescribed under the ESI and PF Acts, despite being deposited before the due date for filing the income tax return.
The Tribunal considered various judgments from different High Courts and the amendments introduced by the Finance Act, 2021. The Tribunal noted the following:
After detailed deliberation, the Tribunal concluded that no disallowance is warranted for the belated payment of employee’s contributions to ESI and PF funds if deposited before the due date of filing the income tax return.
Thus, the appeals of the assessee are allowed, and the disallowance by the Revenue is set aside.
Order pronounced in the Open Court on 28/02/2022.
Judicial Member: (Saktijit Dey)
Accountant Member: (Dr. B. R. R. Kumar)
Dated: 28/02/2022
Subodh Kumar, Sr. PS
Copy forwarded to:
Assistant Registrar
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