BELVEDERE GOLF AND COUNTRY CLUB PVT. LTD.,AHMEDABAD vs. THE ACIT, CIRCLE-1(1)(2), AHMEDABAD

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ITA 502/AHD/2020Status: DisposedITAT Ahmedabad31 May 2022AY 2017-183 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 held that the issue of delayed payment of employees' contribution beyond the due date under the PF Act has been decided against the assessee by the jurisdictional High Court. Therefore, the appeal of the assessee is dismissed.

What were the facts?

The assessee claimed a deduction for employees' contribution to PF. The Assessing Officer disallowed Rs. 1,36,869/- as the payment was made after the due date under the PF Act but within the due date for filing the return of income. The CIT(A) partly allowed the appeal.

What were the issues?

Whether disallowance of employees' contribution to PF made after the due date under the PF Act but within the due date for filing the return of income is justified.

Which sections of the Income-tax Act were involved?

Section 43B,Section 139(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH, AHMEDABAD

Before: Ms. SUCHITRA KAMBLE & SHRI WASEEM AHMED

For Appellant: Shri Biren Shah, A.R
For Respondent: Shri V.K. Singh, Sr. D.R
Hearing: 26.05.2022Pronounced: 31.05.2022

PER SUCHITRA KAMBLE, JUDICIAL MEMBER :

1.

This is an appeal filed by the assessee against order dated 19.08.2020 passed by the CIT(A)-1, Ahmedabad for the Assessment Year 2017-18.

2.

The assessee has raised the following ground of appeal :

“1. On the facts and in the circumstances of the case of the appellant, the learned CIT(A) erred in confirming disallowance of Rs.1,36,869/- being Employees’ contribution to Provident Fund made by the Assessing Officer on the ground that the aforesaid payment was made after the due date prescribed under relevant Act, even though the payment was made within the time prescribed under Section 139(1) of the I.T. Act, 1961 for filing the return of income.

3.

The original return of income was filed on 30.10.2018 declaring total loss of Rs.6,37,61,755/-. Thereafter, revised return of income was filed on 29.10.2018

Page 2 of 3 declaring total loss of Rs.7,70,58,985/-. The Assessing Officer made disallowance of Rs.1,36,869/- towards delayed payment of employees contribution and addition/ disallowance under Section 43B of the Act amounting to Rs.4,97,619/- towards employees benefit expenses.

4.

Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee.

5.

The Ld. AR submitted that the jurisdictional High Court in the case of Deco Mica Limited vs. DCIT (R/Tax Appeal No.302 of 2021) dated 07.01.2022 has decided this issue against the assessee relating to payment of employees’ contribution beyond due date under Employees Provident Funds & Miscellaneous Provisions Act, 1952 and Employees State Insurance Act, 1948.

6.

Ld. D.R. relied upon the decision of the jurisdictional High Court.

7.

We have heard both the parties and perused the relevant material available on record. The issue related to delayed payment of EPF & ESIC contribution is decided against the assessee therein by the Jurisdictional High Court in the case of Deco Mica Limited (supra), the same is dismissed. The issue in present assessee’s case is identical, hence we are dismissing the Appeal of the assessee.

8.

In the result, appeal filed by the assessee is dismissed.

Order pronounced in the open Court on this 31st day of May, 2022.

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