Case Law Details
Indo States Exports Vs ACIT (ITAT Delhi)
The only effective ground is against the disallowance of Rs.3,01,631/- on account of late payment of employee’s contribution towards EPF and ESI. Ld. Counsel for the assessee submitted that authorities below were not justified in disallowing the claim of the assessee in respect of employee’s contribution.
Hon’ble Jurisdictional High Court in the later judgement dated 10.09.2018 in the case of PCIT vs Pro Interactive Service (India) Pvt.Ltd. (supra) held as under:-
“In view of the judgement of the Division Bench of Delhi High Court in Commissioner of Income Tax versus AIMIL Limited, (2010) 321 ITR 508 (Del.) the issue is covered against the Revenue and, therefore, no substantial question of law arises for consideration in this appeal. The legislative intent was/is to ensure that the amount paid is allowed as an expenditure only when payment is actually made. We do not think that the legislative intent and objective is to treat belated payment of Employee’s Provident Fund (EPD) and Employee’s State Insurance Scheme (ESI) as deemed income of the employer under section 2(23)(x) of the Act.”
Respectfully following the same, I hereby direct the Assessing Officer to delete the addition.
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