C & S ELECTRIC LIMITED,DELHI vs. ACIT, OSD RANGE-42, DELHI

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ITA 4961/DEL/2024Status: DisposedITAT Delhi21 March 2025AY 2018-19Bench: SHRI M. BALAGANESH (Accountant Member), Ms. MADHUMITA ROY (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal set aside the issue to the AO for verification of the deposit date of employee's share of PF/ESI against salary disbursement. The AO is directed to grant an opportunity of hearing to the assessee and consider the evidence.

What were the facts?

The assessee's appeal is against an order upholding the disallowance of employee's contribution towards provident fund/ESI amounting to Rs. 171,93,968/- for assessment year 2018-19. The assessee claimed the deposit was made within the prescribed period.

What were the issues?

Whether the disallowance of employee's contribution towards PF/ESI is justified, and if the deposit was made within the prescribed time.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

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

Before: SHRI M. BALAGANESH

For Appellant: Shri Nitin Kumar Sharma, CA
Hearing: 19.02.2025Pronounced: 21.03.2025

O R D E R

PER Ms. MADHUMITA ROY, JM:

1.

The instant appeal, filed by the assessee, is directed against the order dated 04.09.2024 passed by the learned Commissioner of Income-tax (Appeals), Prayagraj, arising out of the order/ intimation under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 21.12.2019 for assessment year 2018-19, where under and whereby the disallowance of the 171,93,968/- has been upheld.

2.

At the time of hearing of the instant appeal learned counsel appearing on behalf of the assessee submitted before us that the employees’ share of provident fund/ESI was deposited within the prescribed period of 15 days from the end of the month in which salary was paid and hence the assessee is entitled to the relief as prayed for.

In this view of the matter verification of the date of payment based on the salaries disbursement ought to have been made by the learned AO.

Such prayer made by the learned AR has not been controverted by the learned DR with all fairness.

Having heard learned Representatives of the parties and having regard to the facts and circumstances of the case we are disposing of the instant appeal by setting aside the issue to the file of learned AO to verify the date of deposit of employees’ share of PF/ESI vis a vis contribution received from the employees u/s 36(1)(va) of the Act on the basis of the salary disbursement and to pass the order accordingly. The AO is further directed to grant opportunity of being heard to the assessee and consider the evidence on record or any other evidence in support of of hearing of the matter. Appeal is thus allowed for statistical purpose.

Order pronounced in open court on 21.03.2025.

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