BARBATE AUTOMOTIVE (INDIA) PRIVATE LTD,NAGPUR vs. DCIT/ACIT CIRCLE-3, NAGPUR

ITA 168/NAG/2024Status: DisposedITAT Nagpur16 May 2024AY 2017-18Bench: SHRI V. DURGA RAO (Judicial Member)7 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that employee's contribution to provident fund, if deposited after the statutory due date, is not allowable as a deduction. This is because such amounts are deemed income of the employer unless deposited on or before the due date.

What were the facts?

The assessee company deposited employee's contribution to provident fund after the due date prescribed by law but before the due date for filing the income tax return. The Assessing Officer disallowed the deduction, and the CIT(A) confirmed the disallowance.

What were the issues?

Whether delayed deposit of employee's contribution to provident fund beyond the statutory due date is allowable as a deduction under the Income Tax Act.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER

For Appellant: Shri Sanjay Thakar
For Respondent: Shri Abhay Y. Marathe

PER K.M. ROY, A.M.

The present appeal has been filed by the assessee challenging the impugned order dated 12/12/2023, passed by the learned Commissioner of Income Tax (Appeals), Kolkata, [“learned CIT(A)”], for the assessment year 2017-18. 2. In its appeal, the assessee has raised following grounds:–

“1) Ld. CIT(A) erred in confirming the disallowance made by Assessing Office amounting to Rs.7,88,452/- towards Employees Contribution Welfare Fund, by misinterpreting actual Legal position. 2) The learned CIT(A) erred in not properly consider Assessee's submission and various supporting documents filed before him, by the Assessee.

Barbate Automotive (India) P

The order continues below.

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