AJIT KUMAR SINGH,PATNA vs. DCIT/AC, CIRCLE-4, PATNA
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Income Tax Appellate Tribunal, “PATNA” BENCH, PATNA
Before: SHRI RAJPAL YADAV, HON’BLE & DR. MANISH BORAD, HON’BLE
PER DR. MANISH BORAD, ACCOUNTANT MEMBER:
The present appeal is preferred by the assessee against the order of the National Faceless Appeal Centre (hereinafter the “ld. CIT(A)”) dated 05/08/2021, passed u/s 250 of the Income Tax Act, 1961 (“the Act’), for Assessment Year 2018-19. 2. The sole issue involved in this appeal is regarding the disallowance u/s 36(1)(va) of the Act on account of delayed payment of employees’ contribution to PF & ESI of Rs.1,80,45,483/-, made by the ld. Assessing Officer as confirmed by the ld. CIT(A).
We have heard rival contentions and perused the material placed before us. The sole issue involved in this appeal is relating to the disallowance of Rs. 1,80,45,483/- made by the Assessing Officer/CPC u/s 36(1)(va) of the Act, on account of delay in deposit of employees’ contribution to PF & ESI. It remains an admitted fact Assessment Year: 2018-19 Ajit Kumar Singh 2 that the same has been deposited after the due date prescribed under the PF & ESI Act but before the due date of filing return u/s 139(1) of the Act. Recently, the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. v. Commissioner of Income-tax-1 [2022] 143 taxmann.com 178 (SC), dealing with this issue has settled down the controversy deciding in favour of the revenue holding that strict compliance with Section 36(1)(va) r.w.s. 2(24)(x) is a must to claim deduction and provisions of Section 43B of the Act cannot be applied on employees’ contribution to PF & ESI and further held that the High Court rulings favouring the assessee had not laid down the correct law and further held that the position of law stands well settled and such employees’ contribution towards PF & ESI if not deposited before the due date prescribed under the relevant Act governing PF & ESI, then in view of the provisions u/s 36(1)(va) r.w.s. 2(24)(x) of the Act, all such amounts shall be added to the income of the assessee. Therefore, respectfully following the ratio of law laid down by the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. (supra), we uphold the findings of the ld. CIT(A) in this respect and dismiss the sole effective ground raised by the assessee.
In the result, appeal of the assessee is dismissed. Order pronounced in the Court on 24th June, 2024 at Kolkata. (RAJPAL YADAV) ACCOUNTANT MEMBER Kolkata, Dated 24/06/2024 *SC SrPs Assessment Year: 2018-19 Ajit Kumar Singh 3
आदेश क" "ितिलिप अ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant
""यथ" / The Respondent 3. संबंिधत आयकर आयु" / Concerned Pr. CIT 4. आयकर आयु" अपील ( ) / The CIT(A)- 5. िवभागीय "ितिनिध अिधकरण अपीलीय आयकर पटना /DR,ITAT, Patna, , 6. गाड" फाईल /Guard file. आदेशानुसार/ BY ORDER,