URBANAC PROECTS PRIVATE LIMITED,NEW DELHI vs. ITO WARD - 27(2), NEW DELHI

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ITA 1728/DEL/2020Status: DisposedITAT Delhi29 March 2022AY 2018-196 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the deposits were made before the filing of the return of income, the addition was not justified. The issue is well settled in favour of the assessee by various High Court decisions.

What were the facts?

The assessee deposited employee contributions to ESI and PF after the due date of filing the return of income but before the actual filing date. The Assessing Officer (AO) made an addition on this account.

What were the issues?

Whether the disallowance of employee's contribution to ESI and PF is justified when deposited before the due date of filing the return of income.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: SH. N. K. BILLAIYA & MS. ASTHA CHANDRA

Hearing: 29/03/2022Pronounced: 29/03/2022

This appeal filed by the assessee is preferred against the order of the CIT(A)-9, New Delhi dated 25.08.2020 for A.Y.2018-19.

2.

The solitary grievance of the assessee is that the CIT(A) erred in confirming the addition of Rs.394382/- on account of employee contribution to ESI and PF.

3.

We have carefully perused the orders of the authorities below. The details of PF deposit is as under :-

4.

The details of ESI deposit is as under :-

5.

We find that the return of income was filed on 06.12.2018. This means that the assessee has deposited PF and ESI well before filing the return of income.

6.

We are of the considered opinion that the issue is now well settled in favour of the assessee and against the revenue by decision of the Hon’ble High Court as follows :-

7.

In the light of the aforementioned judicial decisions we direct the AO to delete the addition of Rs.394382/-. The appeal is accordingly allowed.

8.

Decision announced in the open court in the presence of both parties.

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