Late Remittance of PF & ESIC Contributions Upheld

The Appellate Tribunal ITAT Ahmedabad upheld the addition of late remittances of employee's contribution to PF and ESIC under the Income Tax Act, 1961. The Tribunal relied on the Gujarat High Court's precedent, emphasizing compliance with prescribed due dates for deductions. The appeal was dismissed, affirming the decisions of the CIT(A) and the assessing officer.

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Issues:
Appeal against addition of late remittances of employee's contribution to PF and ESIC under section 36(1)(va) r.w.s. 2(24)(x) of the Income Tax Act, 1961.

Analysis:
The appeal before the Appellate Tribunal ITAT Ahmedabad pertained to the addition of Rs. 1,71,61,294 on account of late remittances of employee's contribution to the PF and Rs. 6,05,295 on account of late remittance of employees' contribution to ESIC, totaling to Rs. 1,77,66,589 under section 36(1)(va) r.w.s. 2(24)(x) of the Income Tax Act, 1961. The assessing officer disallowed this amount as per the provisions of the Act since the assessee had not deposited the employees' contribution to the PF/ESIC within the prescribed due date. The decision was based on the judgment of the Hon'ble Gujarat High Court in the case of Gujarat State Road Transportation Corporation. The CIT(A) confirmed the addition, citing the Gujarat High Court's decision in the case of CIT(A) vs. GSRTC.

During the appellate proceedings, the counsel for the assessee failed to present any new facts to challenge the Jurisdictional High Court's decision in the case of Gujarat State Road Transport Corporation. The Tribunal noted that the issue had already been decided against the assessee based on the due date prescribed in the relevant act for making deductions towards employee's contribution. Citing the Gujarat High Court's ruling that deductions should be made as per the due date, the Tribunal found no merit in the appeal and dismissed it accordingly. The appeal was dismissed, upholding the decision based on the precedent set by the Gujarat High Court.

In conclusion, the Appellate Tribunal ITAT Ahmedabad upheld the addition of late remittances of employee's contribution to PF and ESIC, as per the provisions of the Income Tax Act, 1961. The Tribunal's decision was based on the precedent set by the Gujarat High Court, emphasizing the importance of adhering to the due dates prescribed in the relevant act for making such deductions. The appeal of the assessee was dismissed, affirming the decision of the CIT(A) and the assessing officer.

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