RAM NARAYAN PODDAR,KOLKATA vs. I.T.O., WARD-33(4), KOLKATA, KOLKATA

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ITA 409/KOL/2022Status: DisposedITAT Kolkata18 May 2023AY 2018-20194 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal confirmed the disallowance of the assessee's contribution to PF & ESI amounting to Rs.23,47,770/- and Rs.4,69,224/-. This was based on the Supreme Court's decision in the case of Checkmate Services Pvt. Limited, which states that employee contributions not paid before the due date of filing the return are not deductible.

What were the facts?

The assessee's appeal was filed late by 158 days. The assessee sought condonation of delay due to illness, and the Tribunal condoned the delay considering the COVID period and the assessee's illness.

What were the issues?

Whether the disallowance of employee's contribution to PF & ESI, paid after the due date of filing the return but before the due date of filing the return, is justified in light of the Supreme Court's decision in Checkmate Services Pvt. Limited.

Which sections of the Income-tax Act were involved?

Section 2(24)(x),Section 36(1)(va),Section 43B

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Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA

Before: Shri Rajpal Yadav, Vice- & Shri Rajesh Kumar

Per Shri Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Assessment Year : 2018-2019 Ram Narayan Poddar Delhi dated 9th December, 2021 passed for assessment year 2018-19.

2.

The appeal has been presented on 15.07.2022. Registry has raised an objection that the appeal is time- barred by 158 days. The assessee has filed an application for condonation of delay.

3.

We have gone through this application. As far as computation of delay to the extent of May, 2022 is concerned, it is to be excluded as per the judgment of the Hon’ble Supreme Court being a COVID period. Thus the only delay for filing this appeal is of few days i.e. after 30th of May. Number of days consumed by the assessee till filing of the appeal is to be considered for the purpose of treating the appeal as time-barred. After going through the application of the assessee, we are satisfied that the assessee was prevented by sufficient reason being his illness and, therefore, we condone the delay in filing the appeal. We proceed to decide the appeal on merit.

4.

The assessee has taken two grounds of appeal

1.

, out of which Ground No. 2 is general ground of appeal, which does not call for recording of any finding. Assessment Year : 2018-2019 Ram Narayan Poddar

5. In Ground No. 1, the assessee has taken three sub- grounds, i.e. (a), (b) & (c) and his grievance in this ground is that the ld. CIT(Appeals) has erred in confirming the disallowance of contribution to P.F. & ESI amounting to Rs.23,47,770/- and Rs.4,69,224/-. The contribution of the assessee is that these employees’ contributions were paid by the assessee to PF & ESI account before the due date of filing of the return, but the position of law with regard to this contention has been changed after the decision of the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Limited –vs.- CIT (2022) 143 taxman.com 178 (SC) and in view of this, the disallowance is to be confirmed. The assessee did not make the payments of employees’ contribution to their respective accounts under the P.F. & ESI Acts within the due date and, therefore, he cannot claim the deduction.

6.

In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on May 18th, 2023.

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