Supreme & Co. Pvt Ltd Vs DCIT (ITAT Kolkata)
The appeal was filed by the assessee against the order dated 02.02.2024 of the National Faceless Appeal Centre (CIT(A)) under section 250 of the Income Tax Act.
Grounds of Appeal: 2. The assessee raised the following grounds of appeal:
- Disallowance of Rs. 85,23,450/- under section 36(1)(va) for delayed deposits of PF.
- Argument against disallowance since the deposits were made before the due date of filing the income tax return.
- Assertion that the disallowance was unwarranted and incorrect.
- Dissatisfaction with the CIT(A)’s decision upholding the Assessing Officer’s disallowance.
Issue: The primary issue was the disallowance of Rs. 85,23,450/- under section 36(1)(va) of the Act due to delayed payment of Provident Fund (PF) and Employees State Insurance (ESI) contributions.
Arguments and Decision: The counsel for the assessee argued that while the employees’ contribution was delayed, the employer’s contribution was deposited before the due date of filing the income tax return. They contended that under section 43B of the Act, employer’s contribution should be allowed as a deduction.
The ITAT directed the Assessing Officer to verify the submissions regarding the employer’s contribution. If the employer’s contribution was indeed deposited before the due date of filing the income tax return, it should be allowed as per the provisions of section 43B.
