Case Law Details
Tripoto Travel Private Limited Vs ACIT (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT) Delhi recently made a crucial decision in the case involving Tripoto Travel Private Limited and the Assistant Commissioner of Income Tax (ACIT). The case pertained to the disallowance made towards the delayed payment of employee contributions to the Provident Fund (PF) and Employee State Insurance (ESI).
Tripoto, an online platform providing travel-related services, had filed for an appeal against the disallowance. The primary contention was that the ACIT had erred in the calculation of the dates, which led to the disallowance of Rs. 6,50,936, the sum of the employees’ contributions towards the PF and ESI that were deposited late.
The ITAT noted that the disallowance was made on the basis of certain inaccurate data regarding the dates of the deposits. Tripoto claimed that it had deposited the employees’ contribution of PF amounting to Rs. 1,56,185 before the due date and Rs. 5,09,839 after the due dates prescribed under the relevant statute. However, the Assessing Officer had added the total amount of Rs. 6,50,936 as a disallowance, neglecting to consider the discrepancy in the dates.
Taking into account the factual inconsistencies and the written submission of Tripoto, the ITAT ruled to send the case back to the Assessing Officer for re-adjudication. The officer was directed to verify the actual payment dates with the deposit challans for the disputed contributions. The re-adjudication was to be done in accordance with the law and the decision of the Supreme Court in the case of Chekmate Services Pvt. Ltd.
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