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Income Tax Appellate Tribunal, “B” BENCH, MUMBAI
O R D E R PER PRASHANT MAHARISHI, AM:
SKS Enterprises [ Assessee/ Appellant] for A.Y. 2018-19, against Appellate order under Section 250 of the Income-tax Act, 1961 (the Act) passed by the National Faceless Appeal Centre, Delhi [the learned CIT (A)] dated 30th July, 2021, wherein the appeal filed by the assessee against Assessment order under Section 143(1) of the Act dated 7th November, 2019, passed by the Central Processing Centre, Bangalore, (the learned Assessing Officer) disallowing ₹5,80,629/- being employees’ contribution to provident fund and ESIC deposited beyond the due date prescribed under the respective Provident Fund Act/ ESIC Act, applying
2. Assessee is aggrieved with this and has raised following grounds of appeal:-
“1. On the facts and circumstance of the case, and in Law, the CIT (A) NFAC erred in confirming the disallowance made ofRs.5,80,629/- being payment of PF and ESIC dues under Section 36(1)(va) of the Act considering the same as not deposited on time ignoring the fact that the delay was marginal and payment was made before filing the return.
On the facts and circumstances of the case and in law the Assessing Officer failed to appreciate:
a. that the payments were deposited in the relevant fund before the due date of filing the return. b. Amendment made in Finance Act 2021 pertaining to non-applicability of due date as provided in Section 43B of the Act is not retrospective in nature.
3. The appellant, therefore, prays that the disallowance of ₹5,80,629/- is respect of Late payment of PF shall be deleted.”
This appeal is recalled by Miscellaneous Application order dated 25th May, 2023, wherein the appeal originally allowed in favour of the assessee was recalled based on the Miscellaneous Applications filed by the Revenue.
Despite notice to the assessee, none appeared and therefore, the issue is decided on the merits of the case.
The learned Departmental Representative was heard.
On careful consideration of the facts before us, we find that the assessee has deposited employees’ contribution of Provident Fund (PF) and ESIC dues during the year beyond the due dates prescribed under the respective PF and ESIC Act. The above information is available in form no.3CD and accordingly, the adjustment was made by Central Processing Centre under the Provision of Section 143(1) (a) (iv) of the Act. Same is not allowable u/s 36 (1) (va) of the Act. The disallowance is indicated in the form NO 3 CD but not made in the ROI. The issue is also
In the result, the appeal of the assessee is dismissed.
Order pronounced in the open court on 19.07.2023.