This article discusses the ITAT Delhi’s decision in the case of BT Data and Surveying Services India Pvt. Ltd. vs. Circle-4(2), New Delhi, concerning late deposit penalties of Provident Fund (PF) and Employee State Insurance (ESI) contributions for the assessment year 2019-20.
BT Data and Surveying Services India Pvt. Ltd., a company based in New Delhi, appealed against the penalties imposed for the late deposit of employee contributions to PF and ESI. The appeal challenged the assessments made for the fiscal year 2019-20.
The case proceedings reviewed the application of legislative amendments and prior judicial decisions regarding the timeliness of PF and ESI contributions. Significant discussions in tribunal revolved around whether the Finance Act 2021’s amendments impacted the assessments for earlier years.
The tribunal, citing previous judgments, ruled in favor of the appellant, stating that the contributions, although delayed, were deposited before the statutory deadline for income tax return filing, thus should not attract penalties.
This decision highlights the tribunal’s stance on strict compliance versus substantive compliance, providing clarity on how similar cases might be treated concerning PF and ESI contributions. It reinforces the need for timely fiscal discipline while acknowledging procedural challenges.
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