NATURAL PANEL INDUSTRIES PRIVATE LIMITED,MARGHERITA vs. INCOME TAX OFFICER, WARD-1, DIGBOI

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ITA 44/GTY/2021Status: DisposedITAT Guwahati15 March 2023AY 2018-193 pages
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What did the Tribunal hold?

The tribunal held that the disallowance of employees' contribution to PF and ESI was rightly made, following the Supreme Court's decision in Chekmate Services Pvt. Ltd. However, the issue regarding deduction under Section 80IE was not raised before the CIT(A) and was restored for adjudication.

What were the facts?

The assessee's appeal concerned the disallowance of employees' contribution to PF and ESI. The assessee did not appear, but the Revenue's representative was present. The tribunal decided to hear the appeal based on the grounds raised.

What were the issues?

Whether the disallowance of employees' contribution to PF and ESI was justified, and whether the assessee was entitled to deduction under Section 80IE on the increased income.

Which sections of the Income-tax Act were involved?

Section 80IE

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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:

1.

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.

2.

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.

4.

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.

5.

In the result, the appeal of the assessee is partly allowed for statistical purposes. Kolkata, the 15th March, 2023.

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