ITAT Lucknow says Employer Contributions to Recognised Funds Do Not Attract TDS

ITAT Lucknow upheld the deletion of a TDS demand of ₹2.80 crore raised against Artificial Limb Manufacturing Corporation of India. The Tribunal found that the employer's contributions towards provident fund, pension, gratuity and leave encashment were deposited with recognised funds and LIC, rather than paid directly to employees. Since the Revenue produced no material to establish that the contributions exceeded the prescribed limits or otherwise rebut the appellate findings, the demand could not be sustained.