M/S GURUJI INFRASTRUTURE PRIVATE LIMITED,MUMBAI vs. ADIT,CPC, BANGLORE

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ITA 343/MUM/2023Status: DisposedITAT Mumbai26 April 2023AY 2020-20214 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and restored the issue to the AO. The AO was directed to verify if the deposits were made within the due dates or on the next working day if the due date fell on a holiday, as per the General Clauses Act.

What were the facts?

The assessee company claimed a deduction for employees' contribution to PF/ESIC. The CPC disallowed this claim under Section 143(1) due to late deposit. The CIT(A) upheld this disallowance.

What were the issues?

Whether the disallowance of employees' contribution to PF/ESIC for late deposit is justified when the due date falls on a holiday and the deposit is made on the next working day.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 36(1)(va)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI ABY T. VARKEY, JM & SHRI OM PRAKASH KANT, AM

For Appellant: Ms. Dinkle Hariya
Hearing: 13/04/2023Pronounced: 26/04/2023

O R D E R

PER ABY T. VARKEY, JM:

1.

This is an appeal preferred by the assessee company against the order of the Ld. Commissioner of Income Tax (Appeals)/(NFAC), Delhi dated 19.01.2023 for assessment year 2020-21.

2.

The main grievance of the assessee is against the action of the Ld. CIT(A)/NFAC confirming the action of the CPC passed u/s 143(1) of the Income Tax Act, 1961 (hereinafter “the Act”) disallowing Rs.1,47,39,619/- claimed towards Employees contribution towards provident fund/ESIC. 3. Fact in brief are that the assessee company had filed its return of income on 24.02.2021 declaring total income of Rs.2,93,38,870/-. And thereafter, it received intimation dated 23.012.2021 from CPC, Bangalore u/s 143(1) of the Act wherein an amount of Rs.1,47,39,619/- was disallowed on account of late deposit of Employees contribution towards PF/ESIC in the relevant funds within 2 A.Y. 2020-21 Guruji Infrastructure Pvt. Ltd. the due-date as prescribed under the PF/ESIC Act. Aggrieved by the aforesaid action of the CPC, the assessee preferred an appeal before the Ld. CIT(A)/NFAC which was dismissed by the Ld. CIT(A) vide impugned order. Aggrieved, the assessee is before us. 4. At the outset, the Ld. AR, submitted that the Ld. CIT(A) ignored/over-looked the relevant facts and material brought to his notice that the assessee in fact has remitted the payments of PF/ESI within the due date as prescribed under the respective PF/ESIC Acts. And it was pointed out by the Ld. AR, that sometimes the due date fell on Sunday or on public holidays, therefore, the assessee had remitted the Employees contribution on the next day as prescribed by the General Clauses Act. Therefore, she prayed that the matter may be remanded back to the AO for verification and if the remittance made is found to be in accordance to law, the assessee should be given relief accordingly. 5. Per contra, the Ld. DR supported the action of the Ld. CIT(A) and according to him, in the light of the order of the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. Vs. CIT (Civil Appeal No. 2833 of 2016 dated 12.10.2022) the issue is no longer res- integra and therefore, does not want us to interfere with the order of the Ld. CIT(A). 6. We have heard both the parties and perused the records. The only issue is in respect of the disallowance made by the CPC u/s 143(1) of the Act regarding Employees contribution made to provident fund and ESIC to the tune of Rs.1,43,39,619/-. According to the Ld. AR, at times the due date as per PF/ESI Act fell on Sunday/Public

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