|Income Tax Appellate Tribunal
Section 36(1)(va) | Late PF/ESI Payments Disallowed Even Under Section 143(1) Intimation: ITAT Delhi
The ITAT Delhi has ruled that employers cannot claim deduction for delayed contributions to PF/ESI merely because the tax department processed the return under Section 143(1) without prior notice. This clarifies that compliance deadlines under labor laws are non-negotiable for tax deductions, impacting all employers relying on automatic processing for compliance. The ruling reinforces strict adherence to payment timelines, regardless of procedural automation.