APIDOR ABRASIVE PRODUCTS PVT LTD,NASHIK vs. ASSESSING OFFICER, NASHIK

IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH “A”, PUNE

BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER
AND SHRI VINAY BHAMORE, JUDICIAL MEMBER

आयकर अपील सं. / ITA No.467/PUN/2021
िनधाᭅरण वषᭅ / Assessment Year : 2018-19

Apidor Abrasive Products
Pvt. Ltd.,
Gat No.40/1, 10th Mile, At Jaulake, Tal. Dindori,
Dist. Nashik- 422206. PAN : AAGCA9336A
Vs. DCIT, CPC, Bengaluru.
Appellant

Respondent

आदेश / ORDER

PER VINAY BHAMORE, JM:

This is a recalled matter. Vide order dated 11.11.2024 in M.A. No.193/PUN/2023 for the assessment year 2018-19 filed against the order of the Tribunal in ITA No.467/PUN/2021 dated
20.09.2022 (appeal filed by the assessee) was recalled to adjudicate issue afresh with regard to disallowance of deduction u/s 36(1)(va) of the Act.
2. Facts of the case, in brief, are that the assessee is a company engaged in the business of grinding wheel manufacturing and has Assessee by : None
Revenue by : Ms. Shilpa N. C.

Date of hearing
: 20.01.2025
Date of pronouncement : 28.03.2025
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furnished its return of income on 23.10.2018 declaring total income of Rs.2,33,92,650/-. The said return of income was processed u/s 143(1) of the Act by an order dated 16.10.2019 wherein addition on account of disallowance of Employee’s and Employer’s contributions of PF & ESI paid beyond the due dates as per respective Acts, was made.
3. After considering the reply of the assessee, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee. It is this order against which the assessee is in appeal before this Tribunal.
4. When the appeal was called for hearing, none appeared on behalf of the assessee nor any application for adjournment was filed despite due service of notice of hearing. Therefore, we proceed to adjudicate this appeal on the merits of the case after hearing Ld. DR and on the basis of material available on record.
5. Ld. DR appearing from the side of the Revenue submitted before us that the matter is covered one, since Hon’ble Apex Court in the case of Checkmate Services P. Ltd. & Ors. vs. CIT & Ors.,
(2022) 448 ITR 518 (SC) has already decided the issue of disallowance of PF & ESI payment made beyond due dates as per respective Acts in favour of the Revenue. It was also brought to the knowledge of the Bench that this is a recalled matter and in first round of appeal, the appeal was decided in favour of assessee but 3
since the Department has filed Miscellaneous Application to recall the matter on the basis of Hon’ble Supreme Court’s judgement in the case of Checkmate Services P. Ltd. & Ors. vs. CIT & Ors.
(supra) & the MA was allowed by the Co-ordinate Bench of this Tribunal and the matter was re-fixed for hearing.
6. We have heard Ld. DR and perused the material available on record. We find that the issue of payment of PF & ESI deposited beyond the due dates as per respective Act, is no more res integra in the light of Hon’ble Supreme Court’s judgement in the case of Checkmate Services P. Ltd. & Ors. vs. CIT & Ors. (supra). We further find that the Assessing Officer/CPC, Bengaluru has disallowed an amount of Rs.13,55,320/- and the assessee requested before Ld. CIT(A)/NFAC that the issue of employer’s contribution paid beyond the due dates as per respective Act is not disputed and the dispute of employee’s contribution of PF & ESI paid beyond the due dates as per respective Acts is only in dispute, accordingly, it was the contention of the assessee before Ld. CIT(A)/NFAC that if any disallowance was to be made it should be restricted to employee’s contribution only. In this regard, we find that Ld.
CIT(A)/NFAC has not considered this contention of the assessee and confirmed the order passed by the Assessing Officer/CPC,
Bengaluru wherein an amount of Rs.13,55,320/- was disallowed and 4
accordingly Ld. CIT(A)/NFAC in his order confirmed the same disallowance. In this regard, we accept the contention of the assessee made before Ld. CIT(A)/NFAC wherein complete bifurcation of employer’s and employee’s contribution was furnished, accordingly in the light of Hon’ble Supreme Court’s judgement in the case of Checkmate Services P. Ltd. & Ors. vs. CIT
& Ors (supra), which is related to the issue of disallowance of employee’s contribution only, we restrict the disallowance u/s 36(1)(va) of the Act to Rs.5,59,522/- only.
7. In the result, the appeal filed by the assessee is partly allowed.
Order pronounced on 28th day of March, 2025. (MANISH BORAD)
JUDICIAL MEMBER

पुणे / Pune; ᳰदनांक / Dated : 28th March, 2025. Sujeet
आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to :
1. अपीलाथᱮ / The Appellant.
2. ᮧ᭜यथᱮ / The Respondent.
3. The Pr. CIT concerned.
4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच,
पुणे / DR, ITAT, “A” Bench, Pune.

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Senior Private Secretary

आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.