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Before: Shri V. Durga Rao & Shri Manoj Kumar Aggarwal
आयकर अपीलीय अिधकरण, ‘बी’ �ायपीठ, चे�ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI �ी वी. दुगा� राव, �ाियक सद� एवं �ी मनोज कुमार अ�वाल, लेखा सद� के सम� । Before Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. No.1056/Chny/2022 िनधा�रण वष�/Assessment Year: 2020-21 M/s. Nalli Chinnasami Chetty, Vs. The Assistant Commissioner of 9, Nageswaran Road, T. Nagar, Income Tax, Chennai 600 017. Non Corporate Ward 7(1), Chennai. [PAN:AAAFN2314E] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri K. Ramakrishnan, C.A. ��थ� की ओर से/Respondent by : Shri D. Hema Bhupal, JCIT सुनवाई की तारीख/ Date of hearing : 23.01.2023 घोषणा की तारीख /Date of Pronouncement : 31.01.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER:
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 14.10.2022 relevant to the assessment year 2020-21.
Brief facts of the case are that the assessee has filed his return of income on 04.01.2021 for the assessment year 2020-21 declaring total income of ₹.1,21,24,080/-. The CPC processed the return and issued intimation under section 143(1) of the Income Tax Act, 1961 [“Act” in short] dated 02.11.2021 by assessing total income of the assessee at ₹.1,27,26,940/- after disallowing an amount of ₹.6,02,859/- under section 36(1)(va) of the Act towards belated remittance of PF & ESI. On appeal, by following the judgement of the Hon’ble Supreme Court in C.A, No. 283 of 2016 in the lead case of Checkmate Services Pvt. Ltd. v. CIT, the ld. CIT(A) (NFAC) dismissed the appeal filed by the assessee.
On being aggrieved, the ld. Counsel for the assessee has submitted that the due date for remittance of ESI deduction was 14.05.2020 and the assessee has remitted the ESI deduction on 15.05.2020. Further, the PF deduction was remitted on 18.05.2020. It was further submission that due to nation-wide lockdown towards Covid-19 pandemic, the Ministry of Home Affairs (MHA), Government of India ordered under the Disaster Management At, 2005 for the extension of lockdown 31.05.2020 and in view of the above order, shops and establishments were not functioning and with great difficulty, the PF deduction was remitted on 18.05.2020 and prayed for deleting the addition made towards belated remittance of PF & ESI.
On the other hand, the ld. DR fairly conceded that the matter may be remitted back to the Assessing Officer for verification and for fresh adjudication.
We have heard both the sides, perused the materials available on record and gone through the orders of authorities below including the details of Form 3CB, Form 3CD, etc. furnished by the assessee. In this case, the CPC processed the return and disallowed an amount of ₹.6,02,859/- under section 36(1)(va) of the Act towards belated remittance of PF & ESI, which was confirmed by the ld. CIT(A) (NFAC). The contention of the assessee is that the ESI deduction was remitted on 14.05.2020, which was well within the due date of remittance on 15.05.2020. It was also contended that due to nation-wide lockdown towards Covid-19 pandemic, with great difficult, the assessee could remit the PF & ESI deduction. On perusal of the appellate order, under assessee’s submission, it was mentioned that the ESI deduction was remitted on 18.05.2020. Accordingly, we set aside the order of the ld. CIT(A) (NFAC) and remit the matter back to the file of the Assessing Officer to verify as to whether the amounts were remitted as provided under relevant PF & ESI Act and the same may be allowed by affording an opportunity of being heard to the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st January, 2023 at Chennai.