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Facts
The assessee filed an appeal against an assessment order for AY 2018-19 which disallowed Rs. 52,21,651/- due to delayed payment of Employees' Contribution to Provident Fund and Employees State Insurance. The assessee contended that there were typographical errors in Form 3CD regarding these amounts.
Held
The Tribunal noted that the assessee claimed typographical errors in Form 3CD. A Chartered Accountant's certificate was provided to support this claim. The Tribunal set aside the order of the Assessing Officer and directed them to verify the facts.
Key Issues
Whether the disallowance made for delayed payment of employees' contribution to PF and ESI is justified, considering the assessee's claim of typographical errors in the tax audit report.
Sections Cited
250, 143(1), 36(1)(va), 2833/2016
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
This is an appeal filed by the assessee against the order of ld.CIT(A)/NFAC dated 07.11.2022 passed u/s.250 of the Income- tax Act, 1961 (in short ‘the Act) for A.Y. 2018-19 emanating from Assessment order u/s.143(1) dated 02.10.2019 passed by DCIT, CPC, Bangalore.
In this case, earlier the ITAT had heard the case on 01.03.2023 exparte and passed the order on 02.03.2023 dismissing the appeal of the assessee. Lateron, vide M.A.No.67/PUN/2024 order dated 11.04.2025 the Tribunal recalled the order dated 02.03.2023. Accordingly, the appeal came for hearing before us on 12.08.2025.
Submission of ld. AR : 3. Ld. AR submitted that in this case there was disallowance of Rs.52,21,651/- on account of delay in payment of ESI and PF. Ld. AR submitted that the Tax Auditor had entered incorrect figures electronically in Form No. 3CD. These figures include Employer’s contribution as well as Employee’s contribution. Ld. AR filed copy of Chartered Accountant Certificate dated 11.08.2020. Ld. AR submitted that since it is a typographical error by the Chartered Accountant, the correct figure should be disallowed.
Submission of ld. DR : 4. Ld. DR pleaded that Assessing Officer should get opportunity to verify the correctness of figures.
Findings and Analysis : 5. We have heard both the parties and perused the records. In this case, in the order u/s.143(1) there has been a disallowance of Rs.52,21,651/- on account of delayed payment of Employees Contribution to Provident Fund and Employees State Insurance. 2 Assessee filed an appeal against the order u/s.143(1). However, ld. CIT(A) confirmed the same. Aggrieved by the order of ld.CIT(A) assessee has filed appeal before this Tribunal. It has been pleaded before us that there has been typographical errors in the Form No.3CD filed online. Ld. AR filed Chartered Accountant Certificate. Relevant part of the said certificate is reproduced hereunder :
“We hereby state that we, Shah Parekh & Sabhani, Chartered Accountants, were the income tax auditors of Arvee Electricals & Engineers Pvt. Ltd. having PANAABCAS809R, for A.Y. 2018-19. While filing the form 3CD of the company for A.Y. 2018-19, we had reported the amounts of monthly payments w.r.t. contribution to provident fund and ESI referred to in section 36(1)(va), in clause 20(b) of the form 3CD for A.Y. 2018-19. However, while filling the online form 3CD there were typographical errors in the amounts filled under that clause. I have enclosed the relevant extract of form 3CD for your kind perusal. In the said clause, the amounts reported against contribution towards provident fund included the contribution made by the company, the admin charges and other fees, whereas, only employees' contribution should have been reported. Secondly, for the month of May 2017, the figure reported was Rs.3586622 instead of the correct figure of Rs.35866 only, which was reported as paid on 22/06/2017. Similarly, for the months of December 2017, January 2018 and March 2018, the figures reported as Rs.27,439, Rs.1,24,549 and Rs.11,849 should actually have been Rs.2,76,439, Rs.1,25,549 and Rs.18,849, respectively.” 5.1 Since this certificate has not been considered by the Assessing Officer, in the interest of justice, we set aside the order of the Assessing Officer to the Assessing Officer. Assessing Officer shall verify the facts and make disallowance as per the law laid down by the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. Appeal No.2833/2016. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes. 3
In the result, appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in the open Court on 29th August, 2025.