REJI VARGHESE,CHENNAI vs. DCIT, CPC,BANGALORE, BANGALORE

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), (National Faceless Appeal Centre [NFAC], Delhi dated 26.12.2022 relevant to the assessment year 2018-19.

Brief facts of the case are that the assessee filed her return of income on 18.09.2018 declaring total income of ₹.96,07,050/- after considering all deductions under chapter VIA for the assessment year 2018-19. The assessment has been completed under section 143(1) of the Income Tax Act, 1961 [“Act” in short] by assessing total income of the assessee at ₹.2,63,94,910/-. On appeal, the ld. CIT(A) has confirmed the additions.

With regard to the disallowance of employer’s contribution to PF and ESI of ₹.11,81,154/- and ₹.47,817/- respectively are concerned, the ld. Counsel for the assessee has submitted that the Assessing Officer has disallowed even though the remittance was made before filing the return of income and also submitted that the issue may be considered and decided in accordance with law. If the amount is paid before due date of filing of the return of income, the same should be allowed. Accordingly, we remit the matter to the file of the Assessing Officer to examine the date of payments, etc. and decide the issue in accordance with law.

So far as disallowance of employee’s contribution to PF and ESI of ₹.9,47,280/- are concerned, the issue is squarely covered against the assessee by the judgement of the Hon’ble Supreme Court in the case of in the case of M/s. Checkmate Services P. Ltd. v. CIT in Civil Appeal No.2883 of 2016 dated 12.10.2022. Accordingly, the ground raised by the assessee is dismissed.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced on 30th March, 2023 at Chennai.