This document provides a detailed review of the Income Tax Appellate Tribunal’s decision in the case of Vinoy Krishna versus the ACIT for the assessment year 2018-19. The case examines issues related to the tax treatment of late contributions to Provident Fund and Employee State Insurance, and procedural correctness in the issuance of tax orders.
The appeal by Vinoy Krishna challenged the additions made under section 143(1) of the Income Tax Act, 1961, pertaining to late PF & ESI contributions which were paid after the due dates prescribed by the respective statutes but before the due date of filing the tax return as per section 139(1) of the Act.
The primary issue addressed was whether the Income Tax Authorities were justified in making additions for employee contributions to provident fund and ESI that were paid beyond the specified due dates. The secondary issue concerned the format and detail provided in the tax orders issued by the Assessing Officer.
The tribunal noted that the issues regarding late PF & ESI contributions were effectively settled by the Supreme Court in the Checkmate Services Pvt. Ltd. case, which held against the assessees for such late contributions. The tribunal therefore upheld the additions made by the lower tax authorities. On the procedural aspect, the tribunal observed that the additional grounds raised concerning the format of the tax orders were not debatable following the authoritative pronouncement by the Supreme Court.
The document concludes that the ITAT’s decision supported the established legal precedents, emphasizing the necessity for timely compliance with statutory contribution deadlines and procedural rigor in tax order issuance. The analysis underscores the importance of clear and detailed reasoning in tax assessments and the implications of non-compliance.
Vinoy Krishna vs. ACIT: Detailed Review of ITAT Decision for AY 2018-19
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