KIRAN AUTOMOBILES PRIVATE LIMITED,PATNACITY vs. CPC AO, PATNA

PDF · subscribers
ITA 82/PAT/2021Status: DisposedITAT Patna09 April 2024AY 2018-193 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that as per the Supreme Court's decision in Checkmate Services (P) Limited, if employee contributions to PF & ESI are not paid within the due dates, the assessee is not entitled to any deduction. Therefore, the assessee's grounds of appeal were rejected.

What were the facts?

The assessee, Kiran Automobiles Private Limited, appealed against the disallowance of Rs. 28,66,076/-. This disallowance was made by the Assessing Officer because the assessee failed to deposit employee PF & ESI contributions within the due dates.

What were the issues?

Whether the disallowance of employee PF & ESI contributions is justified when not paid within the due dates, in light of the Supreme Court's ruling.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, KOLKATA-PATNA ‘e-COURT’, KOLKATA

Before: Shri Rajpal Yadav, Vice-(KZ) & Dr. Manish Borad

Per 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), Delhi dated 3rd September, 2021 passed for A.Y. 2018-19.

Assessment Year: 2018-2019 Kiran Automobiles Private Limited

2.

The assessee has taken four grounds of appeal, out of which Grounds No. 3 and 4 are general grounds of appeal, which do not call for recording of any finding.

1.

3. In Ground No. 1, the assessee has pleaded that the ld. CIT(Appeals) has erred in confirming the disallowance of Rs.28,66,076/-, which was disallowed by the ld. Assessing Officer on the ground that the assessee failed to make payments of PF & ESI within due date to these respective accounts.

4. In Ground No. 2, the assessee has made arguments in its favour on the strength of order of ITAT in as well as on the strength of Hon’ble Patna High Court in the case of Bihar State warehousing Corporation Limited -vs.- CIT reported in (2016) 386 ITR 410.

5. With the assistance of ld. D.R., we have gone through the record carefully. Recently Hon’ble Supreme Court has considered all these decisions and silent the controversy on this issue. The Hon’ble Supreme Court in the case of Checkmate Services (P) Limited –vs.- CIT reported in 143 taxmann.com 178 has held that if employees’ contribution is not paid to the respective P.F. & ESI Accounts, then assessee will not be entitled for any deduction. In view of Assessment Year: 2018-2019 Kiran Automobiles Private Limited the latest decision of the Hon’ble Supreme Court, no other case law is to be followed. Therefore, preference to the decision of the Hon’ble Patna High Court as well as the orders of the ITAT over the decision of the Hon’ble Supreme Court cannot be given. Respectfully following the judgment of the Hon’ble Supreme Court, Ground No. 1 and 2 of the assessee’s appeal are rejected.

More judgments on Section 43B

All 7,161 judgments and leading authorities on Section 43B →

Recent GST High Court judgments

Search GST case law →