KERALA STATE ELECTRONICS DEV CORPN LTD,TRIVANDRUM vs. THE ACIT, TRIVANDRUM

PDF · subscribers
ITA 688/COCH/2019Status: DisposedITAT Cochin10 March 2020AY 2010-112 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A) was justified in confirming the disallowance of employees' contribution to PF/ESI. This decision was based on the jurisdictional High Court's judgments which stated that such contributions paid beyond the due dates are not eligible for deduction.

What were the facts?

The assessee, Kerala State Electronics Development Corporation Limited, appealed against the CIT(A)'s order confirming the disallowance of employees' contribution to PF/ESI. The disallowance was based on the ground that these amounts were remitted beyond the due dates prescribed under the respective Acts.

What were the issues?

Whether employees' contribution to PF/ESI remitted beyond the statutory due dates is eligible for deduction under the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 36(1)(va)

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, COCHIN BENCH, COCHIN

Before: Shri Chandra Poojari, AM & Shri George George K, JM

Hearing: 10.03.2020Pronounced: 10.03.2020

This appeal at the instance of the assessee is directed against the order of the CIT(A), dated 23.08.2019. The relevant assessment year is 2010-2011.

2.

The solitary issue raised in this appeal is whether the CIT(A) erred in confirming the disallowance of employees’ contribution to PF / ESI u/s 36(1)(va) of the I.T.Act on the ground that the above amounts have been remitted beyond the due date prescribed under the respective Acts.

3.

At the very outset, we noticed that the issue raised in this appeal is covered against the assessee by the judgments of the Hon’ble jurisdictional High Court in the case of CIT v. Merchem Limited [(2015) 378 ITR 443 (Ker.)], and Popular

2 M/s.Kerala State Electronics Dev.Corpn Ltd. Vehicles & Services Private Limited v. CIT [(2018) 406 ITR 150 (Ker.)], wherein it has been clearly said that the employees’ contribution to PF and ESI paid beyond the due date prescribed under the respective Acts could not be eligible for deduction u/s 36(1)(va) of the I.T.Act. In view of the judgments of the Hon’ble jurisdictional High Court cited supra, we hold that the CIT(A) is justified in confirming the A.O.’s order, wherein there was disallowance of employees’ contribution to PF / ESI u/s 36(1)(va) of the I.T.Act on the ground that the above amounts were remitted beyond the due date prescribed under the respective Acts. It is ordered accordingly.

4.

In the result, the appeal filed by the assessee is dismissed. Order pronounced on this 10th day of March, 2020.

More judgments on Section 36(1)(va)

All 6,054 judgments and leading authorities on Section 36(1)(va) →

Recent GST High Court judgments

Search GST case law →