DIGICALL TELESERVICES PVT. LTD.,NEW DELHI vs. ACIT, NEW DELHI

ITA 6267/DEL/2015Status: DisposedITAT Delhi09 December 2021AY 2006-0711 pages
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What did the Tribunal hold?

The Tribunal held that belated deposits of EPF and ESI, if made before the due date of filing the return of income, are allowable as deductions and not taxable as income. However, the addition on account of interest income on refund was upheld as the assessee failed to demonstrate it was offered for taxation.

What were the facts?

The assessee company engaged in radio paging and call centre services had delayed deposits of Employees' Provident Fund (EPF) and Employees' State Insurance (ESI) contributions. The Assessing Officer added these amounts as income, along with interest received on an income tax refund which was not offered for taxation.

What were the issues?

Whether delayed deposits of EPF and ESI, made before the return filing due date, are allowable as deductions. Whether interest on income tax refund, not offered for taxation, is taxable.

Which sections of the Income-tax Act were involved?

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

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Cases cited in this judgment(2)Show list

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

Before: SHRI G.S.PANNU & SHRI KUL BHARAT

For Respondent: Shri Umesh Takyar, Sr. DR
Hearing: 03.11.2021Pronounced: 09.12.2021

PER KUL BHARAT, JM :

This appeal filed by the assessee for the assessment year

2006-07 is directed against the order of Ld. CIT(A)-29, New Delhi

dated 21.09.2015. The assessee has raised following grounds of appeal:-

“A. That the appellant company was engaged in the business of providing

radio paging services, macro fax in seven cities in India, call centre services

and trading in pagers and pager accessories during the year under consideration. The assessment proceedings were initiated against the appellant company under section 143(3) of the I.T. Act and die AO

completed the assessment on 3 1.12.2008- after addition of Rs.

33,01,928/-. Out of 33,01,928/- su

The order continues below.

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