Mohammed Sabirul Islam

Parties Involved

Facts Summary

The assessee, Mohammed Sabirul Islam, is an individual and proprietor of Smart Group. He filed his return of income under section 139(1) for the assessment year 2019-2020. The CPC, Bangalore issued an intimation with a total addition of Rs.43,21,565/-, comprising Rs.33,46,611/- towards EPF and Rs.9,74,954/- towards ESI. The total amount was paid before the completion of the financial year 2018-19. The tax audit report indicated that the payment of PF & ESI was made just after the statutory provision and before filing the return. The Assessing Officer added back the whole amount without considering the payment made. The assessee appealed to the CIT(Appeals), which dismissed the appeal, leading the assessee to appeal to the ITAT.…

Legal Issues

• 1. Whether the ld. CIT(Appeals) erred in confirming the addition upon disallowance of the deposit for Rs.43,21,565/- under section 36(1)(va) on the ground that the assessee failed to make the payment of employees’ contribution to EPF & ESI account within the due date provided under the EPF & ESI Act.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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