Case Law Details
Trimbak Konher Patil Vs ITO (ITAT Bangalore)
The Trimbak Konher Patil vs ITO case, adjudicated by the Bangalore ITAT, addresses crucial issues concerning the timely payment of employees’ contributions under the PF Act. This detailed analysis delves into the essence of the case, examining legal provisions, judicial interpretations, and their implications.
The crux of the matter lies in the non-payment of employees’ contributions to PF and ESI accounts within the stipulated time frames as mandated by the respective Acts. The ITAT Bangalore, in alignment with judicial precedents and statutory provisions, ruled that such delayed payments deprive the employer of the entitlement to claim deductions under section 36(1)(va) of the Income Tax Act.
The case revolved around the contention raised by the assessee regarding the retrospective application of explanation 5 inserted in section 43B from 01.04.2021. However, the CIT(A) upheld the retrospective amendment, citing the judgment of the Hon’ble Apex Court in the case of Checkmate Services Pvt. Ltd. (448 ITR 518 SC).
Furthermore, the appellant argued that as a labor contractor, there exists no primary liability to collect and remit employees’ contributions directly to the fund, citing provisions of the PF and ESI Acts. This argument, though not raised before the AO or CIT(A), warranted examination due to its factual implications. Consequently, the matter was remanded to the CIT(A) for adjudication.
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