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Income Tax Appellate Tribunal, “GUWAHATI BENCH, GAUHATI
Before: Shri Rajpal Yadav, Vice- & Shri Manish Borad
order
: March 15, 2023 ORDER
Per Manish Borad, Accountant Member:
This appeal is at the instance of the assessee pertaining to the Assessment Year 2018-19 is directed against the order of the National Faceless Appeal Centre [in short ld. “CIT(A)”] dated 16.03.2021.
Though the assessee has filed adjournment application but looking to the grounds of appeal
which leads to disallowance of employees’ contribution to PF and ESI at Rs.6,26,597/- and since the issue has already been decided by the Hon’ble Apex Court in favour of the Revenue, we decide to hear the appeal with the assistance of the ld. DR, since, even if the assessee has appeared, there would be no change in the outcome of this appeal.
3. From the grounds of appeal, we notice that so far as the disallowance of PF & ESI is concerned, we find that the Hon’ble
Assessment Year: 2018-19 Natural Panel Industries Pvt. Ltd Supreme Court in Chekmate Services Pvt. Ltd. Vs. CIT (2022) 143 taxmann.com 178 (SC) dated 12.10.2022 has settled the issue and thus in the light of the ratio of the Hon’ble Apex Court, we are inclined to hold that the said sum of Rs.6,26,597/- has rightly been disallowed.
Another grievance of the assessee is that since it is entitled to deduction 80IE of the Act, therefore, even if the income is increased on account of disallowance of PF & ESI for the said delay, it will be entitled to deduction u/s 80IE of the Act. We notice that this issue has not been raised before Ld. CIT(A). Therefore, in the interest of justice, this issue is restored to the file of Ld. CIT(A) for necessary adjudication for which reasonable opportunity needs to be provided to the assessee. Thus, Ground No.3 raised by the assessee stands allowed for statistical purposes. Ground No.4 is general in nature and need no adjudication.
In the result, the appeal of the assessee is partly allowed for statistical purposes. Kolkata, the 15th March, 2023.