DINESH CHANDRA SEMWAL,NEW DELHI vs. ITO WARD - 28(1), NEW DELHI

ITA 21/DEL/2021Status: DisposedITAT Delhi29 December 2021AY 2018-1920 pages
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What did the Tribunal hold?

The Tribunal held that the issue is covered by the Delhi High Court judgments in AIMIL Ltd. and Pro Interactive Service (India) Pvt. Ltd. These judgments allow deduction for employee contributions if actually paid before the due date of filing the return, even if paid late according to the PF/ESIC Acts.

What were the facts?

The assessee claimed deduction for late payment of employee's contribution to PF and ESIC. The CPC made an adjustment under section 143(1) disallowing this deduction. The CIT(A) upheld the disallowance.

What were the issues?

Whether late deposit of employee's contribution to PF/ESIC beyond the due date prescribed under the respective Acts, but before the due date of filing the Income Tax Return, is allowable as a deduction under the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 36(1)(va),Section 43B,Section 139(1),Section 2(24)(x)

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Before: SH. KUL BHARAT

Hearing: 29/12/2021Pronounced: 29/12/2021

PER KUL BHARAT JM: This appeal by the assessee is preferred against the order of the CIT(A)-10, New Delhi dated 07.09.2020 pertaining to A.Y.

2018-19. 2. The assessee has raised following solitary grounds :-

1.

Whether the learned CIT(A) was justified in sustaining the addition of Rs 373030.00 made by CPC through adjustment u/s 143(1) on account of late payment of Provident Fund and ESIC u/s 43B of the ACT.

2.

Whether the Id CIT(A) was justified in applying ratio of Bharat Hotels Limited case in which Hon Delhi High Court has directed the assessing officer to check the dates of payments as per the order of the Hon Court and decide the quantum of amount of disallowance.

3.

Whether the CPC has rights to mak

The order continues below.

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