No AI summary yet for this case.
Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Before: SHRI PRAMOD KUMAR & SHRI SANDEEP SINGH KARHAIL
Date of Hearing – 18.05.2022 Date of Order – 25.05.2022
O R D E R PER BENCH
The present appeal has been filed by the assessee challenging the impugned order dated 15/12/2021, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [”learned CIT(A)”], for the assessment year 2018 – 19.
HBN Network Pvt. Ltd. ITA No.281/Mum./2022
The only grievance of the assessee in the present appeal is against the doubled disallowance of Rs. 10,94,630, on account of delay in payment towards employee’s contribution to Provident Fund (P.F.) and Employees State Insurance Corporation Scheme (ESIC) under section 36(1)(va) of the Act, by the Centralized Processing Centre, Bengaluru, while possessing the income tax return under section 143(1) of the Act, which was upheld by the learned CIT(A) vide impugned order dated 15/12/2021.
The brief facts of the case as emanating from the record are: The assessee is a company and is engaged in the business of wholesale and retail marketing of consumer goods. For the year under consideration, the assessee filed its return of income of Rs. Nil, after considering the brought forward business loss of Rs. 1,24,68,752. While filing the return of income, the assessee itself made the disallowance of Rs. 10,94,630 under section 36(1)(va) of the Act, on account of delayed payment towards employee’s contribution to PF and ESIC.
The return of income filed by the assessee was processed under section 143(1) of the Act determining total income of Rs. 10,94,630, inter- alia, after again disallowing Rs. 10,94,630 under section 36(1)(va) of the Act on account of delay in payment towards employee’s contribution to PF and ESIC. In appeal before the learned CIT(A), assessee specifically submitted that while filing the income tax return the amount of Rs. 10,94,630 was already added to the income under section 36 of the Act, which was in respect of late payment of PF and ESIC, therefore, the double
HBN Network Pvt. Ltd. ITA No.281/Mum./2022 addition made pursuant to intimation issued under section 143 (1) of the Act be deleted. The learned CIT(A) vide impugned order dated 15/12/2021 dismissed the appeal filed by the assessee. Being aggrieved, assessee is in appeal before us.
During the course of hearing, learned Authorised Representative submitted that doubled disallowance made under section 36(1)(va) vide intimation issued under section 143(1) of the Act, which was upheld by the learned CIT(A), be deleted. On the other hand, learned Departmental Representative fairly agreed to the submission so made on behalf of the assessee.
We have considered the submissions and perused the material available on record. It is clearly discernible from perusal of computation of total income and income tax return for the year under consideration, which are forming part of the paper book, that in the peculiar facts of the present case, the assessee itself had disallowed delayed payment towards employee’s contribution to PF and ESIC under section 36 of the Act. The said amount of Rs. 10,94,630 was again disallowed under section 36(1)(va) vide intimation issued under section 143(1) of the Act. Learned CIT(A) also did not consider the submission of the assessee in respect of deletion of double addition on this issue, which is noted in para 5 at page 3 of the impugned order, and merely dismissed the appeal filed by the assessee in view of amendment by the Finance Act, 2021.
HBN Network Pvt. Ltd. ITA No.281/Mum./2022
In view of the above, as same disallowance of Rs. 10,94,630 under section 36(1)(va) of the Act has been made twice, therefore, we direct the jurisdictional Assessing Officer to delete the second disallowance of Rs. 10,94,630 made under section 36(1)(va) of the Act. Accordingly, ground nos. 1 and 2 raised in assessee’s appeal are allowed.
Ground No. 3 raised in assessee’s appeal needs no separate adjudication, in view of the aforesaid findings.
In the result, appeal by the assessee is allowed. Order pronounced in the open court on 25.05.2022