SULA VINEYARDS LIMITED ,MUMBAI vs. DCIT, CENTRAL CIRCLE 5(3), MUMBAI

ITA 2082/MUM/2025Status: DisposedITAT Mumbai16 July 2025AY 2023-24Bench: SMT. BEENA PILLAI (Judicial Member), SHRI GIRISH AGRAWAL ( (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the one-day delay in depositing ESIC and PF contributions was due to a technical glitch beyond the assessee's control and that there was no malafide intention. Therefore, the disallowance and addition made were not sustainable.

What were the facts?

The assessee filed its original return of income, which was processed by the CPC to assess a higher income. The CPC disallowed the Employee's Contribution to ESIC and PF under Section 36(1)(va) due to a one-day delay in payment, attributing it to a technical error by the bank.

What were the issues?

Whether a one-day delay in depositing employee contributions to ESIC and PF, caused by a bank's technical error, justifies disallowance under Section 36(1)(va) when there is no malafide intention on the part of the assessee.

Which sections of the Income-tax Act were involved?

Section 36(1)(va),Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SMT. BEENA PILLAI & SHRI GIRISH AGRAWAL

For Appellant: Shri Ajay R. Singh, Akshay Pawar
For Respondent: Shri Arun Kanti Datta CIT D.R
Hearing: 07.07.2025Pronounced: 16.07.2025

Per: Smt. Beena Pillai, J.M.: The present appeal filed by the assessee arises out of order dated 31/01/2025 passed by Ld.CIT(A) 53 - Mumbai for assessment year 2023-24 on following grounds of appeal : “ The learned CIT(A) has erred in assessing the income at Rs 1,14,77,30,850/- instead of returned income of Rs 1,14,57,79,530/-.

2 ITA No.2082/Mum/2025; A.Y. 2023-24 Sula Vineyards Limited The learned CIT(A) has erred in disallowing the Employee's Contribution to Employee State Insurance (ESIC) and Provident Fund (PF) u/s 36(1)(va). This disallowance was imposed despite the extenuati

The order continues below.

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