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Income Tax Appellate Tribunal, “DB” BENCH, JODHPUR
O R D E R
PER PAVAN KUMAR GADALE JM:
The assessee has filed the appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi / CIT(A) passed u/s 154 and 250 of the Income Tax Act, 1961. The assessee has raised the following grounds of appeal:
On the facts and circumstances of the case and law, the ld. Hon'ble CIT (A) The AO has erred in disallowing the payment made of employee share of PF and ESI contribution after the due date as prescribed u/s 36(a)(va) of the Act whereas as per the decision of Supreme Court of India though there is delay in payment of PF and ESI but all has been paid on or before the due date as prescribed in SRM spinners Ltd, Bhilwara - 2 - sec. 139(1) of the IT Act, 1961 for furnishing ITR-6. Therefore, there should not be any disallowances 2. The brief facts of the case are that the assessee is engaged in manufacturing of yarn and has filed the return of income for the A.Y 2020-21 disclosing a total income of Rs. Nil after setting off of Losses and the return of income was processed with a disallowance of employees contribution towards PF and ESI of Rs.12,24,825/-. Subsequently the assessee has filed the rectification petition U/sec 154 of the Act and the A.O has confirmed the disallowance in respect of employees contribution towards PF and ESI and the order was passed u/sec 154 of the Act dated 04.03.2022.
Aggrieved by the order the assessee has filed an appeal before the CIT(A), whereas the CIT(A) considered the submissions of the assessee, grounds of appeal findings of the AO and relied on the decision of the Hon’ble Supreme Court in the case of Checkmate Service Pvt Ltd Vs CIT-1 in Civil Appeal No. 2833 of 2016 dated 12 -10- 2022 and dismissed the assessee appeal. Aggrieved by the order of the CIT(A) the assessee has filed an appeal before the Honble Tribunal.
4. At the time of hearing none appeared on behalf of the assessee and the Ld. DR supported the order of the CIT(A).
5. We heard the Ld. DR submissions and perused the material on record. The sole disputed issue challenged by the SRM spinners Ltd, Bhilwara - 3 - assessee that the CIT(A) erred in confirming the addition u/s 36(1)(va) of the Act in respect of delayed payment of employees contribution towards PF and ESI. We found that the CIT(A) has considered the decision of Hon’ble Supreme Court in the case of Checkmate Service Pvt Ltd and CIT, in Civil Appeal No. 2833 of 2016 dated 12 Oct 2022 and has observed at Para13.2 of the order as under:
13.2 Thus, in view of the above discussion and judgement of the Hon'ble Supreme Court reproduced above, the addition made on the basis of the appellant's own audit report by applying provisions of Section 36(1)(va) read with Section 2(24)(x) is found to be valid and proper in fact and law. Considering the totality of the facts and circumstances of the case, the disallowance of Rs. 12,24,825 on the above account is upheld 6. We find he CIT(A) has considered the facts, submissions and the decision of the Honble Supreme court and sustained the disallowance. Accordingly, we do not find any infirmity in the order of the CIT(A) and uphold the same and dismissed the grounds of appeal of the assessee.
In the result the appeal filed by the assessee is dismissed. 7.
Order pronounced in the open court on 18.08.2023.