Deduction for delayed cost of worker’s contribution on PF and ESI earlier than submitting of ROI admissible: ITAT

Deduction - Delayed Payment - Payment - Employee's Contribution on PF & ESI - PF - ESI - ROI - ITAT - TaxScan

The Mumbai bench of the Earnings Tax Appellate Tribunal (ITAT) has held that deduction is allowable for delayed cost of worker’s contribution to Provident Fund (PF) and ESI earlier than submitting of Earnings Tax Return (ROI).

Gulermak-TPL Pune Metro Joint Enterprise, the assessee challenged the order of the First Appellate Authority in upholding the changes made by the Centralized Processing Heart Bengaluru whereas processing the earnings tax return below part 143(1) on the premise of sure inputs from the Tax Audit Report Gave. Act u/s 36(1)(va) RWS 2(24)(x) of the assessee in query on account of delay in making cost in the direction of workers’ contribution to Provident Fund and ESI dues.

It was clear that the Assessing Officer couldn’t have taken a view opposite to the view taken by the CPC Excessive Courtroom – particularly when his consideration was particularly invited to binding judicial precedents on this regard. For that reason additionally, the inputs thought of within the tax audit report will not be ample motive for disallowance.

Whereas making ready the tax audit report, the auditor is anticipated to report data as per the provisions of the Act, and the tax auditor has completed so, however that data ceases to be related, as per the legislation laid down by the courts, which To the extent that the enacted laws binds us all, the mentioned disallowance will not be relevant if the cost is made earlier than the due date of submitting of earnings tax return u/s 139(1).

Respectfully following the view taken by the Co-ordinate Bench above, the ITAT Bench comprising Pramod Kumar (Vice-Chairman), and AB T. Varkey (Judicial Member) directed the Assessing Officer to put aside the impugned disallowance, specifically, PF and Delayed cost of ESI contributions. The appeals have been allowed.

Subscribe to TaxScan Premium to view the judgment

Help our journalism by subscribing TaxScan Premium, What ought to I comply with Wire for fast updates

Gulermak Vs Assistant Earnings Commissioner

Quotation: 2022 TaxScan (ITAT) 1734

Supply hyperlink