M/S. ABT LIMITED,COIMBATORE vs. ADIT CPC BENGALURU, KARNATAKA

PDF · subscribers
ITA 1002/CHNY/2023Status: DisposedITAT Chennai05 December 2023AY 2021-223 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the EPFO circular only exonerated the assessee from penal damages and did not extend the due date for payment. Following the Supreme Court's decision, the disallowance was confirmed.

What were the facts?

The assessee claimed a deduction for late payment of PF/ESI dues amounting to Rs. 44.17 Lacs. The delay in payment ranged from 4 to 30 days for different installments. The assessee relied on an EPFO circular regarding Covid-19 related delays.

What were the issues?

Whether late payment of PF/ESI dues, even if due to Covid-19 related reasons, is eligible for deduction under Section 36(1)(va) in light of Supreme Court pronouncements.

Which sections of the Income-tax Act were involved?

Section 36(1)(va)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “B” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Respondent: Shri Hema Bhupal (JCIT)-Ld. Sr. DR

सुनवाईकीतारीख/Date of Hearing : 30-11-2023 घोषणाकीतारीख /Date of Pronouncement : 05-12-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

The sole grievance of the assessee in captioned appeal is disallowance of late payment of PF / ESI dues for Rs.44.17 Lacs u/s 36(1)(va). The period of delay has been tabulated in impugned order at para 6.2 as under: - Nature of Fund Actual Due Date of Delayed Days Amount Date Payment Provident Fund 15-07-2020 14-08-2020 30 Days 12,13,140/- Provident Fund 15-08-2020 14-09-2020 30 Days 12,75,724/- Provident Fund 15-10-2020 19-10-2020 4 Days 19,27,947/- Total 44,17,081/-

2.

During appellate proceedings, the assessee relied on EPFO Circular No.1112 dated 15.05.2020 which stated that delay in deposit of contribution during the period of Covid-19 lockdown, could not be attributed to any culpable state of mind of the employer and therefore, would not call for penal damages for delay in deposit of dues. However, Ld. CIT(A) held that granting relief from penal damages on delayed payment can by no stretch of imagination be equated with extension of due date for payment of EPF. Accordingly, the disallowance was upheld.

3.

Before us, Ld. AR relied on the same circular and pleaded that there was minor delay due to lockdown situation arising out of COVID-19 pandemic. To support the submissions, Ld. AR referred to the decision of Kolkata bench of Tribunal in Steel House vs. DCIT (ITA No.766/Kol/2023 dated 17-10-2023) wherein similar disallowance was deleted for short delay of 3 days and 1 days respectively. The Ld. Sr. DR submitted that the issue is covered against the assessee by the decision of Hon’ble Apex Court. 4. It is undisputed fact that the impugned issue stood against the assessee by the latest decision of Hon’ble Supreme Court in bunch of appeals titled as Checkmate Services P. Ltd. Vs CIT (143 Taxmann.com 178). So far as the cited circular is concerned, the same merely exonerate the assessee from penal damages and nothing more. The decision of Hon’ble Apex Court would certainly take precedence over the cited decision of Kolkata Tribunal. Respectfully following the ratio laid down by Hon’ble Apex Court, we confirm the impugned order.

5.

The appeal stand dismissed. Order pronounced on 05th December, 2023.

More judgments on Section 36(1)(va)

All 6,054 judgments and leading authorities on Section 36(1)(va) →

Recent GST High Court judgments

Search GST case law →