SURESH DHARNIA,JAIPUR vs. INCOME TAX OFFICER, JAIPUR

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.

Held

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.

Key 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.