VENKATA SATYA LAKSHMI KANTHA RAO GRANDHI,GUNTUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), GUNTUR

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ITA 93/VIZ/2024Status: DisposedITAT Visakhapatnam27 February 2025AY 2021-22Bench: the Ld. CIT(A).7 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the disallowance, stating that delay in depositing employee's PF/ESI contributions is not excusable without proof of timely submission to bankers, following the Supreme Court's Checkmate Services judgment. It confirmed that the CPC has the power under Section 143(1) to disallow such claims if apparent from the record, and the levy of interest under Sections 234A, 234B, 234C is consequential.

What were the facts?

An individual assessee filed their return for AY 2021-22, and the AO added Rs. 4,59,827/- for delayed payment of employee's PF & ESI contributions. The assessee contended the delay was due to the banker's processing and the Covid-19 pandemic, despite generating challans on time. The Ld. CIT(A) dismissed the appeal, relying on the Supreme Court's decision in Checkmate Services Private Limited vs. CIT.

What were the issues?

Disallowance of employee's PF/ESI contributions due to delayed payment, power of CPC to make this adjustment under Section 143(1), and consequential levy of interest.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 36(1)(va),Section 43B,Section 234A,Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM

Before: SHRI LALIET KUMAR, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

For Appellant: Shri S. Rama Rao, AR
Pronounced: 27.02.2025

आदेशकीप्रतततलतपअग्रेतषत/ Copy of the order forwarded to:- 1. तििााररती/ The Assessee : Venkata Satya Lakshmi Kantha Rao Grandhi, D.No. 25-7-11, 3rd Lane, Ramanama Kshetram, Guntur, Andhra Pradesh – 522004. 2. राजस्व/ The Revenue : DCIT, Circle-1(1), Guntur, Andhra Pradesh.

3.

The Principal Commissioner of Income Tax 4. तवभागीयप्रतततिति, आयकरअपीलीयअतिकरण, तवशाखापटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax गार्ाफ़ाईल / Guard file 6. //True Copy// आदेशािुसार / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam

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