Haribhakti & Co. LLP vs DCIT, Central Circle-2(3), Mumbai

Parties Involved

Facts Summary

The assessee, Haribhakti & Co. LLP, claimed a deduction under section 36(1)(va) of the Income-tax Act, 1961 for employees’ contribution to Provident Fund (PF). However, the contribution was deposited with a delay. The Assessing Officer (AO) rejected the claim and made an addition of Rs.15,72,131/-. The assessee appealed to the Commissioner of Income-tax (Appeals) (CIT(A)), arguing that the delay was due to extraordinary circumstances during the COVID-19 pandemic. The CIT(A) rejected the appeal, leading the assessee to file the present appeal before the Income Tax Appellate Tribunal (ITAT). The delay in depositing the employees’ PF contribution occurred during the COVID-19 period, specifically from April 2020 to March 2021, which coincided with the nationwide lockdown.…

Legal Issues

• 1. Whether the delay in depositing employees’ PF contribution due to the COVID-19 pandemic justifies the claim for deduction under section 36(1)(va) of the Income-tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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