2025 (1) TMI 1568

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....alf of the assessee submits that solitary issue raised in appeal is disallowance u/s. 36(1)(va) of the Income Tax Act, 1961(hereinafter referred to as 'the Act') for alleged delay in deposit of employees contribution to EPF and ESI fund. The Id. Counsel for the assessee submits that the assessee has been regularly depositing employee's contribution to ESI and PF. It was during the Covid period that there was delay of 3 to 10 days in deposit of ESI contributions in two months i.e. May 2020 and June 2020. Similarly, there was minor delay in deposit of employee's contribution to Provident Fund during May 2020 to August 2020. He further submitted that to mitigate the problem faced by the employers in deposit of EPF during Covid ....

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.... ESI during Covid pandemic. The delay is in respect of deposits during the months of May 2020 to August 2020. The delay in deposit of PF and ESI during the Financial Year 2020-21 is tabulated herein under :- Details of Employee's Cont. to ESI F.Y. 2020-21 (AY 2021-22) S. No. Month Employee's Cont. Due date Date of Deposit Disallowance 1 Apr-20 1,45,915 15-May-2020 18-May-2020 1,45,915 2 May-20 94,865 15-Jun-2020 25-Jun-2020 94,865 3 Jun-20 1,67,103 15-Jul-2020 13-Jul-2020 - Details of Employee's Cont. to PF F.Y. 2020-21 (AY 2021-22) S. No. Month Employee's Cont. Due date Date of Deposit Disallowance 1 Apr-20 25,06,809 ....

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....y of penal damages for delayed payment during the period of lockdown by issuing the aforesaid circular, there is no question of treating the delay which occurred during the period of lockdown detrimental to the assessee under the Act, more specifically under the explanation to section 36(1)(va) of the Act. The delay in deposit of PF and ESI of the employees' share is for the month of April 2020 and May 2020. These months fell in the period of lockdown when pandemic of COVID-19 was at its peak. Due dates to deposit for these two months were 15.05.2020 and 15.06.2020 as per the relevant enactments. Assessee deposited the delayed amount in the month of June 2020 when there was relaxation in the lockdown and banking was permitted. There is ....