Case Law Details
S K G Traders P Ltd Vs DCIT (ITAT Delhi)
S K G Traders P Ltd filed an appeal before the ITAT Delhi challenging the disallowance of employees’ contribution to Provident Fund/ESIC under section 36(i)(va) read with section 43B of the Income Tax Act for the assessment year 2019-20. The appeal argued that the contribution was paid before the due date of filing the return and should not be disallowed. However, the appellant did not appear for the hearing, and the ITAT proceeded ex-parte.
The ITAT Delhi considered the issue of taxability of belated payment of employees’ contribution to Provident Fund/ESIC, citing the judgment of the Supreme Court in the Checkmate Services case. The ITAT referred to a co-ordinate bench ruling and recent decisions in similar cases and concluded that the disallowance of the contribution was permissible under section 143(1) of the Act. The ITAT upheld the disallowance and dismissed the appeal.
The ITAT Delhi upheld the disallowance of employees’ contribution to Provident Fund/ESIC in the case of S K G Traders P Ltd. The late deposit of the contribution was considered taxable income and the deduction under section 36(i)(va) was not allowed. The decision aligns with previous rulings on the matter, including the judgment in the Checkmate Services case.
FULL TEXT OF THE ORDER OF ITAT DELHI
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