Tribunal upholds disallowance of delayed payments for PF & ESI, disallowance of deduction u/s 80P

The Tribunal upheld the disallowance of delayed payments of employees' contribution for PF and ESI and disallowance of deduction u/s 80P for the Assessment Year 2018-19. The Tribunal determined that the amendment to section 80AC(ii) was applicable, justifying the disallowance as the return was filed beyond the due date specified u/s 139(1). The Tribunal dismissed the appeal, citing precedents and holding that the disallowances were correctly made and upheld by the CIT(A), ultimately leading to the dismissal of the appeals by the assessees.

---

---

Issues:
Appeal against disallowance of deduction u/s 80P of the Income Tax Act and disallowance of delayed payments of employees' contribution for PF and ESI for the Assessment Year 2018-19.

Analysis:
1. The assessee filed a return of income claiming deduction u/s 80P but the AO disallowed the deduction and made disallowance of delayed payments of employees' contribution for PF and ESI. The AO passed an order u/s 154 without changes to the original order u/s 143(1).

2. The CIT(A) dismissed the appeal filed by the assessee. The Tribunal heard the appeals together and considered the grounds raised by the assessee, challenging the CIT(A)'s order. The issues raised included the correctness of disallowing deduction u/s 80P and the disallowance of delayed payments of employees' contribution for PF and ESI.

3. The Tribunal referred to a Supreme Court decision in a similar case and upheld the disallowance of delayed payments of employees' contribution for PF and ESI. Regarding the disallowance of deduction u/s 80P, the assessee argued that the amendment to section 80AC(ii) was not applicable for the relevant assessment year. However, the Tribunal held that the amendment was applicable, and the disallowance was justified as the return was filed beyond the due date specified u/s 139(1).

4. The Tribunal emphasized that the amendment to section 143(1)(a)(v) did not apply to the case, and the disallowance u/s 80P was correctly made and upheld by the CIT(A). The Tribunal dismissed the grounds raised by the assessee, citing a decision of the High Court of Madras supporting the disallowance.

5. In another case, where the assessee filed the return beyond the due date, the Tribunal applied the same reasoning and dismissed the appeal. The appeals of the assessees were ultimately dismissed by the Tribunal.

This detailed analysis of the legal judgment highlights the issues raised by the assessee, the arguments presented, and the Tribunal's decision regarding the disallowance of deduction u/s 80P and delayed payments of employees' contribution for PF and ESI for the Assessment Year 2018-19.

---