O.K. Auto Components Pvt. Ltd. vs. Dy. Commissioner of Income Tax

Parties Involved

Facts Summary

The appellant, O.K. Auto Components Pvt. Ltd., filed its return for the assessment year 2019-20, which was processed under section 143(1) of the Income Tax Act, 1961. The Assessing Officer (AO) made an adjustment of Rs. 5,51,903/- under section 36(1)(va) of the Act for late deposit of PF and ESI contributions of employees’ share. The appellant received an intimation under section 143(1) of the Act containing this disallowance. Aggrieved by this adjustment, the appellant filed an appeal before the Learned Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC), ACIT/JCIT(A), Ranchi, which was dismissed. The appellant then filed this appeal before the Income Tax Appellate Tribunal (ITAT), challenging the disallowance.…

Legal Issues

• 1. Whether the CPC, Bengaluru/AO was competent to make an adjustment of the delayed payment of PF/ESI of Rs. 5,51,903/- under section 36(1)(va) of the Act via intimation issued under section 143(1) of the Act?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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