A.C.I.T., CIRCLE - 49(1), KOLKATA, KOLKATA vs. WEBEL SUPPORT MULTIPURPOSE SERVICE CO-OPERATIVE SOCIETY LIMITED, KOLKATA

This is the appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)- NFAC, Delhi [hereinafter referred to as ‘Ld. CIT(A)’] dated 29.03.2022 for the assessment year 2018-19.

The only issue raised by the revenue is against the deletion of addition of Rs. 1,51,97,013/- by the Ld. CIT(A) as made by the DCIT, CPC, Bangalore on account of disallowance on the account of belated remittance of Employees’ contribution to PF and ESI.

At the outset, it was brought to our notice that though the issue is covered against the order of Hon’ble Supreme Court in the case of M/s Checkmate Services Pvt. Ltd. vs. CIT in (2022) 143 taxmann.com 178 (SC) dated 12.10.2022 However, the Ld. A.R placed before the Bench a statement showing the payments were made well within the time as provided under the relevant Act and therefore the Ld. Counsel for the assessee prayed that the disallowance may be restricted only to the amounts which were paid beyond the due date under respective Act. The Ld. A.R placed before us the statement showing as PF and ESI along with challans and submitted that the payments which were made by the assessee on or before due date may kindly be allowed.

The Ld. D.R on the other hand prayed before the Bench the issue may be restored to the file of the AO so that necessary verification may be done of these challans. Accordingly we restore the issue to the file of the AO with the direction to verify the payments made by the assessee in respect of PF & ESI. Needless to say, if the payments are made within the due date under the respective Act, the same are to be allowed. The assessee is also directed to co-operate in the proceedings of filing necessary challans before the AO. Accordingly the appeal of the assessee is allowed for statistical purposes.

In the result, appeal of the revenue is partly allowed.