SHIVAM PACKAGING INDUSTRIESPVT LTD.,MUMBAI vs. CIT (A), DELHI

ITA 614/MUM/2023Status: DisposedITAT Mumbai19 May 2023AY 2018-1910 pages
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What did the Tribunal hold?

The Tribunal held that the disallowance of employee contributions to PF and ESIC deposited after the due date prescribed under the relevant Act is correct, following the Supreme Court's decision in Checkmate Services Pvt. Ltd. However, the Tribunal found that the disallowance included employer's share and administrative charges, which should be allowed. The AO was directed to re-verify and disallow only the employee's share of PF and ESI contributions deposited late.

What were the facts?

The assessee claimed deductions for employee contributions to PF and ESIC. These contributions were deposited after the due date prescribed under the relevant acts but before the due date for filing the income tax return. The Assessing Officer (AO) and the CIT(A) disallowed these deductions.

What were the issues?

Whether employee's contribution to PF and ESIC deposited after the due date under the respective acts but before the due date of filing the return is allowable as a deduction. Whether the disallowance made by the AO included amounts other than the employee's share of PF and ESI.

Which sections of the Income-tax Act were involved?

Section 36(1)(va),Section 43B

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Cases cited in this judgment(3)Show list

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

Before: SHRI KULDIP SINGH

For Appellant: Shri Vijay Beheti
For Respondent: Shri Jogendra Singh, Sr. AR
Hearing: 11.05.2023Pronounced: 19.05.2023

Aforesaid appeals for AYs 2017-18 and 2018-19 bearing common questions of facts and law are being taken up for disposal by way of consolidated order to avoid repetition of discussion.

2.

The appellant, Shivam Packaging Industries Pvt. Ltd (hereinafter referred to as the ‘assessee’) by filing the present appeal sought to set aside the impugned order dated 14.12.2022 passed by National Faceless Appeal Centre (NFAC), Delhi on the identical ground except difference in additions/ disallowances (grounds of assessment year 2017-18 are taken up for the sake of brevity) on the grounds inter alia that :-

“1. On the facts and circumstances of the case, Ld

The order continues below.

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