DEBENDRA COLDSTORAGE PRIVATE LIMITED,HOOGHLY vs. ACIT, CIRCLE-23(1), HOOGHLY

PDF · subscribers
ITA 880/KOL/2019Status: DisposedITAT Kolkata10 June 2020AY 2015-162 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the Assessing Officer for verification. The AO is to verify if the assessee paid the employees' contribution from its own account without recovering it from employees.

What were the facts?

The assessee claimed a deduction for employees' contribution to Provident Fund and ESI. The Assessing Officer disallowed this amount as it was not paid within the due date prescribed under the respective Acts.

What were the issues?

Whether the disallowance of employees' contribution to PF and ESI is justified when paid after the due date but before the filing of the return of income.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘D’ BENCH, KOLKATA

Before: Shri P.M. Jagtap, Vice- & Shri Satbeer Singh Godara

Per Shri P.M. Jagtap, Vice-President:- This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax (Appeals)-6, Kolkata dated 09.01.2019 and the solitary issue involved therein relates to the disallowance of Rs.2,37,079/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of expenditure claimed by the assessee towards employees contribution on account of Provident Fund and ESI.

2.

The assessee in the present case is a Company, which is engaged in the business of running a Cold Storage Unit. The return of income for the year under consideration was filed by it on 26.09.2015 declaring total income at ‘NIL’. During the course of assessment proceedings, it was noticed by the Assessing Officer that the assessee has claimed Assessment Year: 2015-2016 Debendra Cold Storage (P) Limited verification by the Assessing Officer. We find merit in this contention of the ld. D.R. and since the ld. Counsel for the assessee has also not raised any objection for sending the matter to the Assessing Officer for such verification, we restore this issue to the file of the Assessing Officer for the limited purpose of verifying the claim of the assessee of having paid the employees contribution towards P.F. and ESI from its own account without recovering the same from the concerned employees. If the claim of the assessee is found to be correct on such verification, the Assessing Officer shall allow the deduction to the assessee-company on account of the employees’ contribution towards P.F. and ESI.

5.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on June 10, 2020.

More judgments on Section 43B

All 7,161 judgments and leading authorities on Section 43B →

Recent GST High Court judgments

Search GST case law →