PF/ESI Payment Delayed by Technical Issues Allowable as Deduction: ITAT Ahmedabad

Tandem Data Processing Pvt. Ltd. Vs ADIT (ITAT Ahmedabad) The case Tandem Data Processing Pvt. Ltd. vs. ADIT before ITAT Ahmedabad dealt with the disallowance of ₹4,32,177 under Section 36(1)(va) of the Income Tax Act for a delayed deposit of employees’ Provident Fund (PF) and ESIC contributions. The Assessee argued that the payment was made within the due date of August 15, 2017, but the credit reflected on August 16 due to server issues. The Assessing Officer (AO) disallowed the deduction, and the CIT(A) upheld this decision, citing amendments to Section 36 and the Supreme Court’s ruli...