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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, JM
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (in short “CIT(A)”) for Assessment Year (AY) 2018-19.
Malabar Regional Coop Milk Producers Union Ltd 2. Briefly the facts of the case are that the appellant is a Cooperative Society engaed in the business of milk procurement from the members. The return of income for the AY 2018-19 was filed on 22/10/2018 declaring the income of Rs. 15,11,76,780/-. Against the said return of income, the assessment was completed by the Assessing Officer (in short “AO”) vide order dated 20/03/2021 passed U/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961 (in short “the Act”) at a total income of Rs. 15,29,55,589/-. While doing so, the AO repeatd the addition of prima facie adjustment made U/s. 143(1) of the Act by disallowing the employees’ contribution to PF of Rs. 12,21,976/- and made a disallowance of Rs.5,56,829/- U/s. 14A of the Act.
Being aggrieved by the disallowances, an appeal was filed before the CIT(A), who vide impugned order agreed with the submissions made by the appellant before him deleted the addition U/s. 14A. However, confirmed the addtion made on account of belated remittance of employees’ contribution towards PF & ESI of Rs. 12,21,976/-.
Being aggrieved the appellant is in appeal before us in the present appeal.
When the appeal was called on, none appeared on behalf of the assessee despite issue of service of notice. Therefore, we dispose of this appeal after hearing the Ld. Sr. DR. Malabar Regional Coop Milk Producers Union Ltd 6. The only issue involved in the appeal relates to the disallowance of belated remittance of employee’s contribution to PF & ESI. On this issue, the appellant took a plea that the employees’ contribution in PF & ESI for the month of March, 2018 was piad on 16/04/2018, since 15/05/2018 was a Holiday being Sunday. Therefore, the payment was made on the next working day ie., 16/04/2018 which is the immediate working day of the due date ie., 15/04/2018, the payment made by the appellant should not be treated as a belatd payment in terms of Section 10 of General Clauses Act. In this connection, the appellant placed reliance on the decision of the Hon'ble Delhi High Court in the case of PCIT vs. Pepsico India Holdings Pvt Ltd (ITS- 5654-HC-2023 (Delhi)-O). Thus, the appellant submits that the decision of the Hon'ble Supreme Court in the case of M/s. Checkmate India vs. CIT has no application to the facts of the case.
On the other hand, the Ld. Sr-DR submitted that since the issue is covered against the assessee by the decision of the Hon'ble Apex Court in M/s. Checkmate India vs. CIT (supra), no interferene is called for.
We heard the rival submissions and perused the matreial available on record. The only issue that arises for our consideration is whether the CIT(A) is justified in holding that the appellant has made a belated remittance of employees’ contribution to PF & ESI following the judgment of the Hon'ble Supreme Court in the case of M/s. Checkmate India vs. CIT (supra). In this case, the due date for remittance of employees’ contribution of PF & ESI for the month of March, 2018 was 15/04/2018. However, 15/04/2018 being Malabar Regional Coop Milk Producers Union Ltd Sunday and a Public Holiday, the appellant company remitted the employees’ contribution of PF & ESI on 16/04/2018, the very next working day. In view of the provisions of General Clauses Act, it cannot be said that the employees’ contribution towards PF & ESI was made beyond the due date specified under the Statute. Consequently, the decision of the Hon'ble Apex Court in the case of M/s. Checkmate India vs. CIT (supra) has no application to the facts of the present case. In these circumstances, we hereby set-aside the orders of the lower Authorities and direct the AO to allow the deduction of PF & ESI of Rs. 12,21,976/- claimed by assessee. Accordingly, the appeal of the assessee is allowed.
In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 26th June, 2025.