M/S. GEEKAY FACILITY MANAGEMENT PRIVATE LIMITED,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 3(1)(1), MUMBAI, MUMBAI

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ITA 1624/MUM/2022Status: DisposedITAT Mumbai20 June 2023AY 2019-20203 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the appeal is partly allowed to the extent of verifying if the amount of Rs. 11,47,285/- was deposited before the due date. If found correct, this portion of the disallowance should be allowed.

What were the facts?

The assessee made delayed payments of employees' contribution to PF & ESIC. A disallowance of Rs. 1,14,12,220/- was made on this account. The assessee accepted the disallowance for Rs. 1,02,64,934/- but disputed it for Rs. 11,47,285/-.

What were the issues?

Whether disallowance for delayed payment of employees' contribution to PF & ESIC is justified when part of the payment was made before the due date. The issue revolves around the allowability of the deduction for timely deposited employee contributions.

Which sections of the Income-tax Act were involved?

Section 36(1)(va)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI

Before: SHRI KULDIP SINGH & SHRI GAGAN GOYAL

For Appellant: Shri Gyaneshwar Kataram, A.R
For Respondent: Shri PD Chougule, D.R

Present for: Assessee by : Shri Gyaneshwar Kataram, A.R. Revenue by : Shri PD Chougule, D.R. Date of Hearing : 26 . 05 . 2023 Date of Pronouncement : 20 . 06 . 2023 O R D E R Per : Kuldip Singh, Judicial Member: Heard: Undisputedly as per facts narrated in para 2.4 of the order dated 31.10.2022 (supra) passed by the Tribunal disallowance to the tune of Rs.1,14,12,220/- was made on account of delayed payment of employees’ contribution of PF & ESIC beyond the due date prescribed under the relevant Act. It is also referred in para 4 2 M/s. Greekay Facility Management Pvt. Ltd. of the order (supra) that payment of Rs.1,02,64,934/- was made by the assessee on account of employees’ contribution of PF & ESIC after the due date prescribed under the relevant Act as per section 36(1)(va) of the Act whereas no reference/discussion has been made qua the amount of Rs.11,47,285/- appears to have been deposited by the assessee well before the due date prescribed under the relevant Act. At the same time order passed by the Tribunal qua the payment of Rs.1,02,64,934/- has been accepted by the assessee being the employees’ contribution of PF & ESIC deposited after due date prescribed under the relevant Act.

2.

In view of what has been discussed above, we are of the considered view that the appeal filed by the assessee is partly allowed to the extent of verifying the facts brought on record by the assessee by way of certificate and annexure 1 & 2 prima-facie showing that the amount of Rs.11,47,285/- was deposited well before the due date prescribed under the relevant Act and allow the same if found to be correct.

3.

Resultantly, appeal filed by the assessee is partly allowed.

Order pronounced in the open court on 20.06.2023.

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