MYUNGHWA AUTOMOTIVE INDIA PRIVATE LIMITED,KANCHIPURAM vs. ACIT,CORPORATE CIRCLE-4(1), CHENNAI

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ITA 820/CHNY/2022Status: DisposedITAT Chennai02 November 2022AY 2017-182 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal confirmed the disallowance made by the AO and upheld by the CIT(A). This decision was based on the Supreme Court's ruling in the Checkmate Services P. Ltd. case.

What were the facts?

The assessee made a disallowance for employees' contribution to PF/ESI remitted beyond the due dates. The CIT(A) confirmed this disallowance, relying on the Finance Act, 2021 amendment.

What were the issues?

Whether the disallowance of employees' contribution to PF/ESI remitted beyond the due dates is valid in light of the Supreme Court's decision.

Which sections of the Income-tax Act were involved?

Section 43B,Section 36(1)(va),Section 2(24)(x)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: HON’BLE SHRI V. DURGA RAO, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Appellant: Ms. Divya Sukumar (FCA)- Ld. AR, Shri ARV Sreenivasan – (Addl. CIT)- Ld. DR
For Respondent: Shri ARV Sreenivasan – (Addl. CIT)- Ld. DR

माननीय *ी वी. दुगा0 राव, �ाियक सद2 एवं माननीय *ी मनोज कुमार अ7वाल ,लेखा सद2 के सम9। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा0रण वष0 / Assessment Year: 2017-18) M/s. Myunghwa Automotive India P. Ltd. The ACIT, बनाम/ No.112, Sidadivakkam Village, Corporate Circle-4(1), Vs. Kanchipuram-631 560. Chennai. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAFCM-2148-H (अपीलाथ /Appellant) : (#$थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Ms. Divya Sukumar (FCA)- Ld. AR #$थ कीओरसे/Respondent by : Shri ARV Sreenivasan – (Addl. CIT)- Ld. DR सुनवाईकीतारीख/ : 26-10-2022 Date of Hearing घोषणाकीतारीख / : 02-11-2022 Date of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member):

1.

In this appeal for Assessment Year (AY) 2017-18, the sole grievance of the assessee is confirmation of disallowance of Employees’ Contribution to PF / ESI in terms of Sec.43B r.w.s. 36(1)(va) as well as Sec. 2(24)(x). This issue was hitherto being decided by us in assessee’s favor, inter-alia, by relying upon the decision of Hon’ble High Court of Madras in CIT v. Industrial Security & Intelligence India (P.) Ltd. (TCA No. 585 of 2015, dated 24-7-2015). However, now this issue has been decided by Hon’ble Supreme Court in favor of revenue in its recent decision in bunch of appeals titled as Checkmate Services P. Ltd. Vs CIT (Civil Appeal No.2833 of 2016 dated 12.10.2022). It is admitted position that this decision applies to the facts of case before us. In the above background, the appeal is disposed-off as under.

2.

The assessee’s return was scrutinized u/s 143(3) on 16.12.2019. The Ld. AO made disallowance u/s 36(1)(va) for Rs.8.55 Lacs since the employees’ contribution to various welfare funds like ESI & PF were remitted beyond due dates as prescribed in respective acts. The Ld. CIT(A) relied on the amendment made by Finance Act, 2021 to confirm the disallowance. Aggrieved, the assessee is in further appeal before us. 3. Respectfully following the binding decision of Hon’ble Supreme Court as cited above, the stand of Ld. CIT(A) stand confirmed. The appeal stands dismissed.

Order pronounced on 02nd November, 2022.

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