Benson Movers Pvt. Ltd. Vs ACIT (ITAT Delhi)
The assessee appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre dated 20.10.2022 for Assessment Year 2019-20. The appeal challenged the adjustment made while processing the return under Section 143(1), whereby an addition of Rs. 1,18,48,520 was made on account of employees’ contribution to EPF and ESI, along with the levy of interest under Sections 234A, 234B and 234C.
Material Facts
The Central Processing Centre (CPC) made an adjustment under Section 143(1) by disallowing employees’ contribution to EPF and ESI amounting to Rs. 1,18,48,520. The CIT(A)/NFAC upheld the adjustment.
The assessee appealed before the Tribunal challenging the validity of the adjustment, the addition relating to employees’ contributions to EPF and ESI, and the consequential levy of interest.
Assessee’s Submissions
The assessee submitted that, for determining the due date for depositing employees’ contribution towards PF and ESI, the relevant “month” should be the month in which salary or wages were actually disbursed, and not the calendar month for which the salary became payable.
The assessee requested that the matter be restored to the Assessing Officer for verification of the due dates in accordance with these decisions.
Tribunal’s Observations
