Delayed PF/ESI Contributions Not Deductible, ITAT Rules Citing SC Precedent

Prime Comfort Products Pvt. Ltd. Vs ACIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi, considered an appeal challenging the disallowance of Rs. 21,13,137 claimed as deduction towards delayed payment of employees’ contribution to Provident Fund (PF) and Employees’ State Insurance (ESI) for assessment year 2020–21. During processing of the return, the Centralized Processing Centre (CPC) observed that the assessee had claimed deduction despite not depositing such contributions within the prescribed time. Accordingly, an adjustment was made under Section 143(1), and the disal...