Case Law Details
Sattva Media and Consulting Pvt. Ltd Vs DCIT (ITAT Bangalore)
Introduction: Sattva Media and Consulting Pvt. Ltd. contested a tax dispute against DCIT (ITAT Bangalore) concerning the disallowance of employees’ contribution to provident fund and ESI. The order, dated 23.12.2021, prompted the appeal by Sattva Media.
Detailed Analysis: The crux of the matter lies in the disallowance of Rs. 94,49,275 concerning the employees’ contribution to PF and ESI. The dispute arose from the contention that the payment wasn’t remitted within the specified due dates under respective Acts.
Sattva Media argued that, as per the judgment in Essae Taroka (P.) Ltd. and Spectrum Consultants India (P.) Ltd., the amendment to section 36(1)(va) and 43B of the I.T. Act wouldn’t be applicable for the assessment year 2019-20. This argument was supported by cases like M/s.The Continental Restaurant & Café Co. and Shri Gopalkrishna Aswini Kumar.
The CIT(A), however, dismissed Sattva Media’s appeal, relying on the Gujarat High Court’s decision and emphasizing the need for timely remittance of employees’ contribution to ESI and PF.
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