Case Law Details
Weather Comfort Engineers Private Limited Vs ADIT-CPC (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) in Delhi has upheld the disallowance of belated employees contribution to Provident Fund/ESIC, ruling it permissible in section 143(1) proceedings. The appeal by Weather Comfort Engineers Private Limited against ADIT-CPC stemmed from a late deposit of employees’ contribution, leading to a notable decision that could set precedent for future cases.
The ruling indicates a firm stance by the ITAT towards late contributions to employee welfare schemes. In this case, the assessee challenged the disallowance of employees contribution to Provident Fund/ESIC under section 36(i)(va) r.w.s. 43B of the Act. However, the appeal was dismissed ex-parte as no representative appeared for the assessee. The Revenue department argued that even for Assessment Years prior to 2021-22, belated deposit of employees contribution held in Trust by the assessee are to be reckoned as taxable income. This argument was supported by the Supreme Court judgement in the case of Checkmate Services (P.) Ltd. vs CIT.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (“NFAC”), Delhi dated 21.06.2021 arising from intimation dated 16.10.2019 passed u/s 143(1) of the Income Tax Act, 1961 (“the Act”) concerning Assessment Year 2018-19.
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