SALVATION OUTSOURCING SOLUTION PRIVATE LIMITED,NEW DELHI vs. DCIT, CPC, BENGALURU

ITA 881/DEL/2021Status: DisposedITAT Delhi18 January 2022AY 2018-196 pages
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What did the Tribunal hold?

The Tribunal, following the ratio laid down by the Hon'ble Jurisdictional High Court in the case of AIMIL Ltd. and Pro Interactive Service (India) Pvt. Ltd., held that the disallowance made by the Assessing Officer was incorrect. The Tribunal directed the Assessing Officer to delete the disallowance.

What were the facts?

The assessee's appeal concerns the disallowance of employee contributions to provident fund/ESI amounting to Rs. 25,22,258/- made by the CPC under section 143(1)(a). The assessee contended that the delayed payment was deductible as it was made before the due date for filing the return and cited jurisdictional High Court decisions.

What were the issues?

Whether delayed payment of employee's contribution towards provident fund/ESI is deductible under the Income Tax Act, and if such disallowance can be made via an intimation under section 143(1)(a).

Which sections of the Income-tax Act were involved?

Section 143(1)(a),Section 36(1)(va),Section 139(1)

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Income Tax Appellate Tribunal, DELHI “SMC” BENCH: NEW DELHI

Before: SHRI KUL BHARAT

Hearing: 10.01.2022Pronounced: 18.01.2022

PER KUL BHARAT, JM : This appeal filed by the assessee for the assessment year 2018-19 is directed against the order of National Faceless Appeal Centre (“NFAC”), Delhi

dated 18.05.2021. The assessee has raised following grounds of appeal:-

1.

“That having regard to the facts and circumstances of the case, The impugned order passed by The Learned CIT (Appeal)-NFAC is completely bad in law and wrong in facts. The learned Assessing officer-CPC has erred both on facts and in law in disallowing the contribution of employees towards the provident fund/ ESI amounting to Rs.25,22,258/- without considering the response vide dated 19.09.2019. The delayed payment in respect to contribution of employees towards the

The order continues below.

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