ADIT INFRATEL PRIVATE LIMITED,GURGAON vs. ITO WARD - 1(1), NEW DELHI

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ITA 1658/DEL/2020Status: DisposedITAT Delhi11 February 2022AY 2018-194 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the issue of late deposit of employees' contribution to PF and ESI is squarely covered in favour of the assessee by the judgment of the Hon'ble Delhi High Court. Therefore, the addition made by the lower authorities deserves to be deleted.

What were the facts?

The assessee company, Adit Infratel Pvt. Ltd., had a returned income of Nil. However, the Assessing Officer made an addition of Rs. 14,14,421/- on account of late deposit of employees' contribution to PF and ESI.

What were the issues?

Whether the late deposit of employees' contribution to PF and ESI can be added as income to the assessee's total income, despite favorable judicial precedents.

Which sections of the Income-tax Act were involved?

Section 143(1)

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Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, DELHI BENCH “SMC-2” BENCH: NEW DELHI

Before: SHRI KUL BHARAT

Hearing: 19.01.2022Pronounced: 11.02.2022

O R D E R PER KUL BHARAT, JM:

This appeal, by the assessee, is directed against the order of the learned Commissioner of Income-tax (Appeals)-I, New Delhi, dated 31.08.2020, pertaining to the assessment year 2018-19. The assessee has raised following grounds of appeal:

“1. The action of the lower authorities in computing income at Rs. 14,14,421/- instead of returned income at Rs. Nil is unjust, illegal, arbitrary, illusionary, unwarranted and the addition of Rs. 14,14,421/- deserves to be deleted. 2. That the action in upholding as deemed income of the assessee company a sum of Rs. 14,14,421/- being late deposit of employees

Adit Infratel Pvt. Ltd. Vs. ITO contribution of PF and ESI is unjust, illegal, arbitrary, illusory, unwarranted and the addition of Rs. 14,14,421/- deserves to be

3. The action of CIT(A) in not deleting the addition of Rs. 14,14,421/- made u/s 143(1) being highly debatable and subject to orders favourable and against by superior courts is unjust, illegal, arbitrary, illusory, unwarranted and the addition of Rs. 14,14,421/- deserves to be deleted.

4. The action of CIT(A) in not deleting the addition of Rs. 14,14,421/- made u/s 143(1) inspite of favourable case laws given of Delhi HC and other courts is unjust, illegal, arbitrary, illusory, unwarranted and the addition of Rs. 14,14,421/- deserves to be deleted.

5. Appellant craves leave to add, alter, modify or delete any ground of appeal either before or at the time of hearing of the appeal.”

2.

At the outset learned counsel for the assessee submitted that the issue is relating to delay in deposit of employee’s contribution of PF & ESI. He submitted that the issue is squarely covered in favour of the assessee by the judgment of the Hon’ble Delhi High Court rendered in the case of ITO Vs. AIMIL Ltd. (2010) 321 ITR 508 and also the judgment in the case of M/s Pro Interactive Services (India)

Pvt. Ltd. in ITA no. 983/2018.

3.

On the contrary, learned Sr. DR opposed the submissions and supported the orders of the authorities below.

4.

I have heard rival submissions, perused the material available on record and gone through the orders of authorities below. The learned CIT(Appeals) in para 5.7 of his order has upheld the decision of the Centralized Processing Center, making

Adit Infratel Pvt. Ltd. Vs. ITO the disallowance. The issue is no more res integra. The issue is squarely covered in favour of the assessee by the judgment of the Hon’ble Delhi High Court in the case of M/s Pro Interactive Services (India) Pvt. Ltd. in ITA no. 983/2018. The same judgment has been followed by the coordinate Benches of the Tribunal in catena of decisions. Therefore, respectfully following the decision of Hon’ble Delhi High Court in the case of M/s Pro Interactive Services (India) Pvt. Ltd. (supra) I hereby direct the Assessing Officer to delete the addition.

5.

Assessee’s appeal is allowed.

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