Case Law Details
O Clock Software Private Limited Vs ACIT (ITAT Chennai)
Introduction: The article delves into the case of O Clock Software Private Limited vs. ACIT, as heard by the Income Tax Appellate Tribunal (ITAT) in Chennai. The dispute revolves around the denial of a deduction under section 36(1)(va) of the Income Tax Act, 1961, concerning the delayed payment of Employee’s Provident Fund (PF) and Employee State Insurance (ESI) contributions for the assessment year 2020-21.
Detailed Analysis:
1. Background: The assessee, O Clock Software Private Limited, filed its income tax return for the relevant year, disclosing a total income of ₹14,17,790. The Central Processing Centre in Bengaluru completed the assessment, disallowing ₹1,57,008 for belated payment of PF/ESI.
2. Appeal and Confirmation: The assessee contested the disallowance, leading to an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), New Delhi. Despite the assessee’s arguments, the disallowance was confirmed.
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