SURESH DHARNIA,JAIPUR vs. INCOME TAX OFFICER, JAIPUR

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ITA 235/VIZ/2025Status: DisposedITAT Visakhapatnam18 July 2025AY 2020-21Bench: us : “1. That the disallowance of amount made under Section 36(1)(va) is erroneous and bad in law. The learned AO and CIT(A) failed to appreciate that the contributions to EPF/ESI were deposited before the due date for filing the return of income under Section 139(1), and there was no intention to withhold or misuse such funds. 2. That the bona fide intent of the appellant and practical difficulties should have been considered. The disallowance of amount made does not align with the princip1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed both appeals on the grounds of inordinate delay in filing, finding the assessee's explanation for the delay unsubstantiated and concocted. The assessee's claim of blaming an earlier tax consultant and delayed knowledge of the CIT(A)'s order was not accepted due to lack of evidence and inconsistencies. Consequently, the Tribunal declined to condone the delay, and the appeals were dismissed as time-barred without addressing the merits of the disallowance.

What were the facts?

The assessee filed appeals against disallowances made under Section 36(1)(va) for delayed deposit of employee contributions to EPF/ESI for Assessment Years 2020-21 and 2021-22. These disallowances were initially made by the CPC and subsequently upheld by the CIT(A). The assessee further appealed to the Income Tax Appellate Tribunal, but the appeals were filed with a significant delay of 354 days and 384 days respectively.

What were the issues?

Whether the inordinate delay in filing the appeals before the Tribunal should be condoned; (Underlying issue, not decided on merits): Whether the disallowance of delayed employee contributions to EPF/ESI under Section 36(1)(va) was justified.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 36(1)(va),Section 139(1),Section 43B,Section 2(24)(x),Section 142,Section 36(1)(iv),Section 28,Section 37

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Visakhapatnam Bench

For Appellant: Dr. Aparna Villuri, Sr.AR

आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/The Assessee : Suresh Dharnia, Door No.6-14/1, Shivalayam Street, Vepagunta Ward – 69, Visakhapatnam (Urban) - 530047 2. रधजस्व/ The Revenue : The Income Tax Officer, Visakhapatnam 3. The Principal Commissioner of Income Tax, Visakhapatnam. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण / DR, ITAT, Visakhapatnam 5. गधर्ाफ़धईल / Guard file

आदेशधिुसधर / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam

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