Delhi HC Affirms disallowance of delayed Employees’ PF/ESI Contributions

Summary: In the case of  Woodland (Aero Club) Private Limited V/S Assistant Commissioner Of Income Tax, the Delhi High Court upheld the disallowance of ₹4.14 crore relating to delayed deposits of employees’ PF and ESI contributions under Section 143(1) for AY 2019–20. The firm deposited these contributions after the due dates prescribed under labour laws but before the income tax return filing due date under Section 139(1). It argued that such delays should not lead to disallowance. However, the Court ruled that employees’ contributions, governed by Section 36(1)(va), must be deposite...