This was the remarkable observation by

It was regarding the disallowance of delayed deposit of contribution received by the employees’ towards provident funds and ESI fund.

ITAT held as under:

 It is an undisputed fact that there has been delay in the actual deposit of payment to the appropriate authority but at the same time it was also a fact that all the contributions received by the assessee from its employees have been deposited before the due date of filing of return of income.

We further find that identical issue arose in the case of Dee Development Engineers Ltd.[2021 (4) TMI 393 – ITAT DELHI] wherein the Co-ordinate Bench of Tribunal after considering the decision in the case of CIT vs. AIMIL Ltd. [2009 (12) TMI 38 – DELHI HIGH COURT] decided the issue of the assessee stating we do not think that the legislative intent and objective is to treat belated payment of Employee’s Provident Fund (EPD) and Employee’s State Insurance Scheme (ESI) as deemed income of the employer under Section 2(24)(x) of the Act.

In short , the ITAT held as under: 

1. CPC was not justified in disallowing the payment.

2. We therefore direct the deletion of addition.

3. Thus ground of the appeal of the assessee is allowed.