Case Law Details
Kaarya Facilities and Services Limited Vs ITO (ITAT Mumbai)
Kaarya Facilities and Services Limited contested the order of the Commissioner of Income Tax (Appeals) regarding disallowance under Section 36(1)(va). Explore the legal debate surrounding the due date for wages and its implications.
Background of the Appeals: The appeals, concerning Assessment Years 2017-18, 2018-19 & 2019-20, were filed by Kaarya Facilities and Services Limited against the orders passed by the Commissioner of Income Tax (Appeals) and the National Faceless Appeal Centre under Section 250 of the Income Tax Act, 1961.
Delay Condoned: The appeals faced a time bar issue, but the delay was condoned considering sufficient cause presented by the assessee.
Key Issue: Disallowance under Section 36(1)(va): The central issue in these appeals revolved around the disallowance under Section 36(1)(va) concerning delayed payment of employees’ contributions to PF & ESIC. The assessee also raised additional grounds challenging the impugned addition.
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Author Bio
I have a doubt. Due date for payment of wages is within 7 days from end of wages period. For example Wages for the month of April is due on 7th day of May. Please suggest if the due date of PF and ESIC for the month of April is within 15 days from end of April or May?