This document discusses the appeal of Sarvodaya Enterprises against the order passed by the Commissioner of Income Tax (Appeals)-10, New Delhi for the assessment year 2019-20, which relates to an addition of Rs.3,07,637 made by the CPC, Bangalore. The addition was due to the late deposit of employees’ contributions to PF and ESI but paid before the due date of filing the return.
Sarvodaya Enterprises filed its return on 30.10.2019 for A.Y. 2019-20, which was processed under section 143(1) resulting in an adjustment. The firm appealed against this intimation, but the CIT(A) dismissed the appeal, leading to this further appeal to the ITAT.
The appellant contended that the addition was incorrectly made under section 143(1) as it pertains to a legal issue rather than a mistake apparent from the records. The firm argued based on judicial precedents that since the contributions were deposited before the filing of the return of income, they should not be disallowed.
The tribunal noted that the issue has been settled in favor of the assessee by various judicial pronouncements and particularly referred to the Delhi High Court’s decision in PCIT vs. Pro Interactive Service (India) Pvt. Ltd. Based on these precedents, the tribunal allowed the appeal of the assessee, setting aside the addition made for the late deposit of PF and ESI contributions.
Sarvodaya Enterprises vs Addl. DIT on Late Deposit of Employees’ PF and ESI – ITA No. 1840/DEL/2020
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