JAI PRAKASH RAMAWAT,JAIPUR vs. ADIT, CPC, BENGALORE

None appeared on behalf of the above assessee’s on the issue in question when the case was called out for hearing.

On the other hand, the Ld. DR supported the orders of the Ld. CIT(A), National Faceless Appeal Centre, (NFAC) Delhi.

After hearing the Ld. DR and perusing the materials available on record, the Bench noticed that the AO made the addition of Rs.1,97,803/- Rs.53,59,210/- and Rs.76,790/- u/s 36(1)(va) of Income Tax Act, 1961 on account of late deposit of employees contribution towards PF and ESI Act by the above mentioned assessee’s, holding it deemed income and subjected to tax in the hands of the employer which in first appeal was confirmed by the ld. CIT(A) by holding that the said late payments are not covered under section 43B of the Act and thus the ld. CIT(A) dismissed this ground of the respective assessee’s. However, it is noted that the assessee has deposited employees contribution towards PF & ESI before due date of filing of return. Recently, the Hon’ble Supreme Court has in the case of Checkmate Services Pvt. Ltd. Vs CIT-1, 143 Taxmann.com 178 (SC)/Civil Appeal No. 2833 of 2016 held that the provision of Section 43B of the Act shall not apply to employee’s contribution to PF/ESI and the due date specified u/s 36(1)(va) of the Act shall apply for determination of deductibility of employee’s contribution to PF/ESI. Accordingly, in view of the aforesaid judgement of Hon’ble Supreme Court (supra), the issue in these appeals being similar in nature are remanded back to the file of ld. CIT(A) for afresh adjudication by providing adequate opportunity of being heard to the assessee and the assessee is directed to submit the necessary details/documents concerning the issue in question before the ld. CIT(A) in order to square up the case. Further, the assessee is also at liberty to take any other plea before the ld. CIT(A), if so advised. Thus these appeals of above mentioned assessee are allowed for statistical purposes.