Employees' Contribution To PF And ESI Should Be Remitted Before The Due Date To Allow Income Tax Deduction: ITAT
2 years, 1 month ago

Employees' Contribution To PF And ESI Should Be Remitted Before The Due Date To Allow Income Tax Deduction: ITAT

Live Law  

The Banglore Bench of the Income Tax Appellate Tribunal has held that the employees' contribution to PF and ESI should be remitted before the due date for it to be allowable under Section 43B of the Income Tax Act.The two-member bench of George George K and Laxmi Prasad Sahu relied on the decision of the Supreme Court in the case of Checkmate. The Banglore Bench of the Income Tax Appellate Tribunal has held that the employees' contribution to PF and ESI should be remitted before the due date for it to be allowable under Section 43B of the Income Tax Act. The two-member bench of George George K and Laxmi Prasad Sahu relied on the decision of the Supreme Court in the case of Checkmate Services Ltd. v. CIT, in which it was held that Section 43B does not cover employees' contributions to PF, ESI, etc. The assessee submitted that the payment of employees' contributions to PF and ESI, though belated, was made before the due date of filing the return of income under section 139 of the Income Tax Act and was otherwise allowable under section 43B.

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Mistake In Calculation Of Tax As Per Sec 115BBE Can Be Rectified U/s 154 And Not U/s 263: Ahmedabad ITAT Quashes Revision Made By PCIT
4 months, 1 week ago

Mistake In Calculation Of Tax As Per Sec 115BBE Can Be Rectified U/s 154 And Not U/s 263: Ahmedabad ITAT Quashes Revision Made By PCIT

Live Law  

Finding that all the additions made by the Assessing Officer u/s 68 r/w/s 115BBE are in consonance with the Income Tax Statute, the Ahmedabad ITAT quashed the revisional exercise of power by the PCIT u/s 263. The power under section 263 of the Income tax Act can be exercised where the order of the Assessing Officer is erroneous and prejudicial …

Direct Tax Weekly Round-Up: 23 To 29 June 2024
5 months, 3 weeks ago

Direct Tax Weekly Round-Up: 23 To 29 June 2024

Live Law  

Calcutta High Court Raising Issue Of Non-Service Of Bills At Appellate Stage Not Permissible; Calcutta High Court Upholds 50% Interest Waiver On Property Tax Citation: 2024 LiveLaw 149 Case Title: Saila Ghosh Versus State of West Bengal The Calcutta High Court, while dismissing the appeal of the assessee, upheld the 50% waiver of the interest on property tax. ITAT Orders …

Interest Not Leviable From Assessee For Short Payment Of Tax Due To Payer's Default In Deducting TDS Before FY 2012-2013: ITAT
7 months, 2 weeks ago

Interest Not Leviable From Assessee For Short Payment Of Tax Due To Payer's Default In Deducting TDS Before FY 2012-2013: ITAT

Live Law  

The Delhi Bench of Income Tax Appellate Tribunal has held that since the assessee was a non-resident, the entire tax was to be deducted at source on payment made by the payer to it, and there was no question of advance tax payment by the assessee; accordingly, no interest under Section 234B could be levied upon the assessee.The bench of …

Contribution Collected From Employees If Not Deposited Within Due Dates Prescribed As Per PF & ESIC Act, Is Dis-Allowable: Mumbai ITAT
9 months, 1 week ago

Contribution Collected From Employees If Not Deposited Within Due Dates Prescribed As Per PF & ESIC Act, Is Dis-Allowable: Mumbai ITAT

Live Law  

The Mumbai ITAT recently clarified that mere deposit of employee's contribution before due date of filing return of income as per Section 139 of Income tax Act, will not make it eligible for deduction. Vs. CIT 143 taxmann.com 178, the Bench of Prashant Maharishi and Narendra Kumar Choudhry reiterated that “such sum collected from employees if not deposited within the …

EPF Contribution Paid Next Day After National Holiday, Delhi High Court Allows Deduction As Due Fell On National Holiday
1 year, 2 months ago

EPF Contribution Paid Next Day After National Holiday, Delhi High Court Allows Deduction As Due Fell On National Holiday

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The Delhi High Court has allowed the deduction for the employee’s contribution towards the provident fund as the due date fell on a national holiday.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that since the due date fell on a date that was a national holiday, the deposit could have been made by the respondent or …

Payment Towards Employee’s Contribution To Provident Fund After Due Date Is Not Allowable As Deduction: ITAT
1 year, 9 months ago

Payment Towards Employee’s Contribution To Provident Fund After Due Date Is Not Allowable As Deduction: ITAT

Live Law  

The Mumbai Bench of the Income Tax Appellate Tribunal has held that payment towards an employee’s contribution to the provident fund after the due date is not allowable as a deduction.The two-member bench of Sandeep Singh Karhail and Om Prakash Kant has relied on the Supreme Court's decision in the case of Checkmate Services Ltd. and ruled. The Mumbai Bench …

Employees' Contribution To PF Cannot Be Disallowed Merely On The Basis Of Auditor's Statement: ITAT
2 years ago

Employees' Contribution To PF Cannot Be Disallowed Merely On The Basis Of Auditor's Statement: ITAT

Live Law  

The Mumbai Bench of the Income Tax Appellate Tribunal has deleted the addition made by the Centralised Processing Centre towards employees' contributions to the Provident Fund based on the tax auditor's statement reporting the delay in employee contribution remittances.The two-member bench of Aby T. Varkey and M. Balaganesh has observed. The Mumbai Bench of the Income Tax Appellate Tribunal has …

Amendment To Section 36(1)(va) Of Income Tax Act Is Prospective In Nature: Delhi High Court
2 years, 4 months ago

Amendment To Section 36(1)(va) Of Income Tax Act Is Prospective In Nature: Delhi High Court

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The Delhi High Court has allowed the assessee- TV Today Network Ltd.'s claims for deduction of expenses in nature of 'consumption incentive' offered to the advertisers for booking more The Bench, consisting of Justices Manmohan and Manmeet Pritam Singh Arora, reiterated that the 'due date', in case of delay by the assessee in depositing the employees' contribution to Provident Fund …

Income Tax Dept. Can't Withhold Refunds In Mechanical And Routine Manner: Delhi High Court
2 years, 4 months ago

Income Tax Dept. Can't Withhold Refunds In Mechanical And Routine Manner: Delhi High Court

Live Law  

The Delhi High Court has held that an order under Section 241A of the Income Tax Act cannot be passed in a mechanical and routine manner. The refunds cannot be withheld just because the notice under Section 143 has been issued and the department wants to verify the claim for deduction under Section 10AA of the Income Tax Act. Accordingly, …

Belated Deposit Of PF And ESI Contribution Of Employees Cannot Be Added To Employer's Taxable Income: ITAT Delhi
2 years, 9 months ago

Belated Deposit Of PF And ESI Contribution Of Employees Cannot Be Added To Employer's Taxable Income: ITAT Delhi

Live Law  

The Single Bench of Delhi ITAT, consisting of judicial member Kul Bharat, has ruled that belated payment of employees' contribution to the Provident Fund and State Insurance Scheme cannot be added to the employer's taxable income as deemed income, if the said deposits are made before the due date of filing the income tax return under the Income Tax Act, …

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