The Income Tax Appellate Tribunal (ITAT), Delhi Bench remitted the matter back to AO to find out whether the assessee has deposited the employees contribution of PF before the due date of deposits.
BACKGROUND
The assessee is engaged in the business of providing an online platform under the domain name http://www.tripoto.com to share and discover travel stories and itineraries and related business opportunities. Assessee filed its return of income on 26.10.2017 reporting a total loss of Rs.4,35,89,518.
In the course of assessment, Assessing Officer noted that the assessee has deposited employees’ contribution to PF and ESI beyond the due date specified in the relevant statutes amounting to Rs.6,50,936. He disallowed it and added to the total income of the assessee.
The assessee appealed against the disallowance made towards delayed payment of employees contribution toward Provident Fund (PF) and Employees State Insurance (ESI) of Rs.6,50,936.
There were mistakes in the dates which have been taken into consideration leading to the disallowance in respect of the employees’ contribution towards Provident Fund. According to the assessee, the dates mentioned are evidently verifiable from the challans for the deposit of the impugned contribution.
OBSERVATIONS
The tribunal held that the assessee claims that it has deposited the employees contribution of PF of Rs.1,56,185 before the due date of deposits and Rs.5,09,839 after the due dates of deposits prescribed under the relevant statute. Against this, learned Assessing Officer made an addition of the whole amount of Rs.6,50,936.
“We find it proper to remit the matter back to the file of AO for verification of actual payment dates with the challans for deposit of the impugned contribution in respect of which disallowance has been made,” the tribunal said.
Case Title: Tripoto Travel Private Limited Versus ACIT
Citation: ITA No.1779/Del/2020
