Assessment Year: 2018-19
Case Number: ITA No. 1408/DEL/2021
Date of Order: 2022-04-26
Thyssenkrupp Airport Services SL, operating in Delhi, faced scrutiny from the Income Tax Office (ITO) over the timing of its Provident Fund (PF) and Employee State Insurance (ESI) contributions for the fiscal year 2018-19.
The appeal challenged the orders made by the National Faceless Appeal Centre, Delhi, confirming disallowances by the Deputy Commissioner of Income Tax (DCIT), CPC, Bengaluru, concerning delays in depositing employee contributions towards PF/ESI.
Thyssenkrupp argued that although contributions were delayed as per statutory timelines, they were completed before the tax filing deadline. They cited judicial precedents supporting exemptions from penalties under such circumstances. The tribunal acknowledged these arguments and sided with the appellant, stating that the legislative changes introduced in 2021 about these contributions do not apply retrospectively to the concerned assessment year.
The decision highlights the complexities of tax compliance regarding employee welfare contributions and the impact of legislative timelines on such cases. It underscores the need for businesses to remain vigilant about compliance deadlines to avoid potential disputes and penalties.
Thyssenkrupp Airport Services vs ITO Delhi: Appeal on PF/ESI Delay for AY 2018-19
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