99 Hind Suraksha Pvt. Ltd., based in Haryana, faced a pivotal legal battle against the DCIT, CPC, Bangalore, concerning late deposits of Provident Fund (PF) and Employee State Insurance (ESI) for the fiscal year 2018-19. The dispute was addressed in ITA No. 604/DEL/2021, highlighting significant interpretations of tax law and compliance requirements.
The case arose from disallowances made by the CPC during the processing of the company’s return under section 143(1) of the Income Tax Act, focusing on late PF and ESI contributions. The appeal was taken to the Income Tax Appellate Tribunal (ITAT), where the primary arguments revolved around the timeliness of the deposits and their compliance with statutory deadlines.
During the proceedings, the appellant’s representation cited precedents and statutory interpretations, arguing against the disallowances. The tribunal reviewed decisions such as those from the Gujarat High Court and previous ITAT rulings, which were pertinent to the case’s outcome.
The ITAT’s decision favored the appellant, directing the deletion of disallowances. The tribunal recognized that the deposits were made within the fiscal year and before the tax return filing, aligning with legal precedents that support such timing as compliant.
The case sets a precedent on the importance of adhering to statutory timelines for PF and ESI deposits. It underscores the necessity for businesses to manage their fiscal responsibilities meticulously to avoid potential legal challenges and financial penalties.
Resolution of Late PF and ESI Deposit Dispute: 99 Hind Suraksha Pvt. Ltd. vs. DCIT, 2021
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