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Facts
The appeal arose from an order confirming the disallowance of employees' contribution to PF and ESI. The Assessing Officer made the disallowance based on the tax audit report alleging delayed remittance, but the assessee submitted a revised tax audit report and challans indicating no delay.
Held
The Tribunal restored the issue to the Assessing Officer for verification of the actual remittance dates from the PF and ESI challans, considering the possibility that the tax audit report might be inaccurate regarding the delay.
Key Issues
Whether the disallowance of employees' contribution to PF and ESI is justified when the assessee provides evidence of timely remittance, and if further verification by the AO is required.
Sections Cited
143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI
O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in AY 2018-19, arises out of the ld. Jt. Commissioner of Income Tax (Appeals)-2, Nagpur [hereinafter referred to as ‘ld. JCIT(A)’, in short] in Appeal No. ITBA/APL/S/250/2024-25/1068354543(1) dated 05.09.2024 against the order of assessment passed u/s 143(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 18.02.2020 by the Assessing Officer, DCIT, CPC, Bengaluru (hereinafter referred to as ‘ld. AO’).
The only effective issue involved in this appeal is as to whether the Learned NFAC was justified in confirming the addition made by the Learned AO on account of employees contribution to Provident Fund (PF) and Employee State Insurance (ESI) in the facts and circumstances of the instant case.
We have heard the rival submissions and perused the materials available on record. We find that the Learned AO based on the details reflected by the tax auditor in the tax audit report proceeded to make disallowance of employees contribution to PF and ESI which were alleged to be remitted beyond the due date prescribed under the respective Acts. It was submitted that the tax auditor had furnished the revised tax audit report wherein there was absolutely no delay in remittance of PF and ESI dues. The assessee in support of this had also enclosed the PF and ESI remittance challans. This requires factual verification by the Learned AO and hence we deem it fit and appropriate to restore this issue to the file of Learned AO to verify whether the dues were remitted within the due dates prescribed under the respective Acts directly from the PF and ESI remittance challans by ignoring the tax audit report. With these directions, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 19/05/2025.