MANGALDEEP SUPERSTRUCTURES PRIVATE LIMITED,MUMBAI vs. INCOME TAX OFFICER, NATIONAL E ASSESSMENT CENTRE
IN THE INCOME-TAX APPELLATE TRIBUNAL “D” BENCH,
MUMBAI
BEFORE SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER
&
SMT. RENU JAUHRI, ACCOUNTANT MEMBER
Mangaldeep
Superstructures Pvt. Ltd.
45 Heeramani
Ratanbangur Nagar
Goregaon West,
Maharashtra-400104
v/s.
बनाम
ITO,
Delhi-110001
स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACI771B
Appellant/अपीलार्थी
..
Respondent/प्रतिवादी
Assessee by :
Letter file
Revenue by :
Shri. R. R. Makwana
Date of Hearing
11.02.2025
Date of Pronouncement
14.02.2025
आदेश / O R D E R
PER RENU JAUHRI [A.M.] :-
This appeal is filed by the assessee against the order of the Learned
Commissioner of Income-tax (Appeals), Mumbai/National Faceless Appeal
Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 11.09.2024 passed u/s.
250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2018-19. P a g e | 2
A.Y. 2018-19
Mangaldeep Superstructures Pvt. Ltd.
The assessee has raised the following grounds of appeal: “1. Because the learned CIT (A) grossly erred in dismissing the grounds No.2 of First Appeal regarding adopting the business income as per oder u.s 143(1) dated 02/10/2019 at Rs. 3746879 as against the returned business income at Rs. 3091693/- while passing the assessment order u/s 143(3). 2. Because the learned CIT(a) grossly erred in dismissing the ground No.3 of first appeal regarding addition of Rs. 318203/- in respect of share of profit from partnership firm in the order dated 02/10/2019 u/s 143(1). The addition has resulted in double taxation which is not permissible under the Act. The share of profit from partnership firm has already been taxed in hands of Partnership firm. The share of profit from partnership firm which is separately assessed as such is exempt u/s 10(2A) of the 1. T. Act in hands of partner assesse company. 3. Because the learned CIT(A) grossly erred in dismissing the ground No.4 of First appeal regarding addition of Rs. 336983/-to the returned business income in the order u/s 143(1) dated 02/10/2019 by disallowing statutory contribution received from employees but not deposited to the relevant fund by the due dated under the respective law but before the filing of the return of income under section 139(1) of the I. T. Act.”
Brief facts of the case are that the assessee filed its return for AY 2018-19 on 31.10.2018 declaring total income of Rs. 34,01,110/-. The case was selected for scrutiny and the assessment was completed at an income of Rs. 76,28,160/- vide order dated 20.04.2021. However, while computing the income, Ld. AO adopted the figure of income as per the order u/s 143(1) of Rs. 37,46,879/- (instead of the returned income) and proceeded to make further additions on various grounds. 4. Aggrieved with the order of Ld. AO, the assessee filed an appeal before Ld. CIT(A), wherein he also raised the issue of addition of Rs. 31,82,203/- in respect of share of profit from the partnership firm made in the order u/s 143(1) dated 02.10.2019. The assessee had received the share of profit from P a g e | 3 A.Y. 2018-19
Mangaldeep Superstructures Pvt. Ltd.
partnership firm ‘Prime Mangaldeep JB’ in which he had profit sharing ratio of 49%. However, Ld. CIT(A) did not adjudicate the issue on the ground that it was arising out of the order u/s 143(1) dated 02.10.2019 which is an independent and separately appealable order.
Aggrieved with the order of Ld. CIT(A), the assessee has filed an appeal before the Tribunal.
5. Grounds No. 1 & 2: Addition of share of profit from the partnership firm - Rs. 31,82,203/-.
5.1
Before us, Ld. AR pointed out that the share of profit from the partnership firm amounting to Rs. 31,82,203/- was wrongly added u/s 143(1) of the Act whereas the same is clearly exempt u/s 10(2A) of the Act. It has been submitted by Ld. AR that notice u/s 143(2) was issued on 23.09.2019 and during the pendency of assessment proceedings, the CPC issued intimation u/s 143(1) on 02.10.2019. Thereafter, the assessment order u/s 143(3) was passed on 20.04.2021 incorporating the addition made u/s 143(1) of the Act.
Ld. AR argued that the addition of share of profit from the partnership firm in the assessee’s hands amounts to double taxation since it has already been taxed in the hands of the partnership firm.
Ld. DR, on the other hand, strongly relied on the order of Ld. CIT(A).
P a g e | 4
A.Y. 2018-19
Mangaldeep Superstructures Pvt. Ltd.
2 We have heard the rival submissions. It is clear that the share of profit from the partnership firm, which is separately assessed to tax is exempt in the hands of the partners u/s 10(2A) of the Act. Accordingly, the addition made on this account is not justified. Ld. CIT(A)’s stand that the issue does not arise from the impugned order is also not correct, as by taking the figure of income from the order u/s 143(1), the addition on account of share of profit from the partnership firm has been incorporated in the order u/s 143(3). We, therefore, hold that the addition deserves to be deleted in view of clear provisions of section 10(2A) of the Act. 6. Ground No. 3: Addition on account of PF/ESI contributions paid after the due date – Rs. 3,36,983/-. 6.1 A sum of Rs. 3,36,983/- was added to the returned income in the order u/s 143(1) disallowing statutory contributions received from the employees which were deposited by the assessee after the due date but before filing of return of income. The assessee has submitted the following charts showing actual date of deposit of employees’ contributions to PF and ESI against the due dates applicable for different months: ESI contribution: Month Amount Due Date Actual Date of payment May 2017 2,951 21.06.2017 27.07.2017 June 2017 39,029 15.07.2017 20.07.2017 July 2017 50,176 15.08.2017 22.08.2017
P a g e | 5
A.Y. 2018-19
Mangaldeep Superstructures Pvt. Ltd.
October 2017
47,078
15.11.2017
29.11.2017
January 2018
57,475
15.02.2018
16.02.2018
February 2018
43,651
15.03.2018
17.03.2018
March 2018
38,683
15.04.2018
17.04.2018
Total
2,80,043/-
PF Contribution:
Month
Amount
Due date
Actual date of payment
May 2017
2,966
15.06.2017
27.06.2017
June 2017
9,635
15.07.2017
20.07.2017
July 2017
11,988
15.08.2017
22.08.2017
October 2017
4,518
15.11.2017
29.11.2017
January
9,835
15.02.2018
16.02.2018
February 2018
10,094
15.03.2018
19.03.2018
March 2018
7,904
15.04.2018
17.04.2014
Total
56,940/-
Thus total disallowance of Rs. 3,36,983/- [Rs. 2,40,043/- + 46,940/-]
was made u/s 36(1)(va) at the time of processing of return u/s 143(1) of the Act.
6.2
Ld. AR has submitted that no additions on this account were called for as these amounts had been deposited before the due date of filing of return.
6.3
On the other hand, Ld. DR has argued that the decision of the Hon’ble
Apex Court in the case of Checkmate India Pvt. Ltd v/s CIT in Civil Appeal No.
2833 of 2016 dated 12.10.2022 squarely applies to the facts of this case which is against the assessee. Since all the payments have been made after the due dates as per assessee’s own charts, these have been rightly added to the income.
6.4
We have heard the rival submissions and perused the material placed before us. As per the provisions of section 36(1)(va), the employees’
contributions to PF and ESI have to be deposited by the due date prescribed
P a g e | 6
A.Y. 2018-19
Mangaldeep Superstructures Pvt. Ltd.
under the respective acts. On perusal of the charts submitted by the assessee and reproduced in Para 7.1 hereinbefore, it is clear that all the payments have been made beyond the respective due dates, and therefore, the addition made u/s 36(1)(va) of Rs. 3,36,983/- deserves to be upheld. Accordingly, this ground of appeal of the assessee is rejected.
7. In the result, the appeal of the assessee is partly allowed.
Order pronounced in the open court on 14.02.2025. RAHUL CHAUDHARY
RENU JAUHRI
(न्यातयक सदस्य/JUDICIAL MEMBER)
(लेखाकार सदस्य/ACCOUNTANT MEMBER
Place: म ुंबई/Mumbai
दिनाुंक /Date 14.02.2025
अननकेत स ुंह राजपूत/ स्टेनो
आदेश की प्रतितलति अग्रेतिि/Copy of the Order forwarded to :
1. अपीलार्थी / The Appellant
2. प्रत्यर्थी / The Respondent.
3. आयकर आयुक्त / CIT
4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT,
Mumbai
5. गार्ड फाईल / Guard file.
सत्यावपि प्रवि ////
आदेशानुसार/ BY ORDER,
उि/सहायक िंजीकार (Dy./Asstt.