BHARATIYA BAROOD UDHYOG,NAGPUR vs. DCIT JCIT CIRCLE 2, NAGPUR
Facts
The assessee appealed an order from the CIT(A) disallowing Provident Fund and bonus payments. The assessee had deposited the Provident Fund after the due date for filing the income tax return but before the due date for depositing the fund, and the bonus was paid before filing the return.
Held
The assessee requested to withdraw the appeal as they had opted for the Direct Tax Vivad se Vishwas Scheme, 2024. The Tribunal granted permission to withdraw the appeal, with liberty to restore it if the scheme declaration did not succeed.
Key Issues
Whether the disallowance of Provident Fund and bonus paid after the due date of filing return but before deposit/payment date is justified. Whether the appeal can be withdrawn due to opting for the Vivad se Vishwas Scheme.
Sections Cited
Section 2(24)(x) of the Income Tax Act, 1961 (implied by PF/bonus disallowance), Section 43B of the Income Tax Act, 1961 (implied by PF/bonus disallowance)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI V. DURGA RAO
Captioned appeal by the assessee is emanating from the impugned order dated 21/03/2024, passed by the learned Commissioner of Income Tax (Appeals)–1, Coimbatore, [“learned CIT(A)”], for the assessment year 2017–18.
In its appeal, the assessee has raised following grounds:–
“1. Because the learned Commissioner (Appeals) has erred in disallowing Provident Fund deposited before the due date of filing of the income tax return and disallowing bonus payable though it is paid before filing of the income tax return. 2. Because the learned Commissioner (Appeals) has erred in ascertaining the details of expenditure though it was provided by the assessee.
2 Bharatiya Barood Udyog ITA no.293/Nag./2024 3. Because the assesse had deposited the provident fund of Rs.1,22,383/- that was due on 15.01.2017 on 13.02.2017, and the amount of Rs.17,396/- disallowed is of bonus. All this information is clearly stated in TAR enclosed. 4. Because the case law of the Honorable Apex Court in case of M/s Alom Extrusion Limited & Others reported at 319 ITR 306 (SC) in the matter of provident fund contributions of the employees is totally misconstrued. Instead of allowing the amounts are disallowed. 5. Because in the detailed Tax Audit Report enclosed clearly states the above mentioned facts. 6. The assessee craves leave to add or alter any of the ground of appeal on or before the date of hearing. The assesse requests for an opportunity for personal hearing in this matter.”
When the case was called for hearing, the learned Counsel for the 3. assessee, by way of its application dated 28/02/2025, submitted that he has opted for the Direct Tax Vivad se Vishwas Scheme, 2024 (DTVsV Scheme, 2024) and hence he may be permitted to withdraw the appeal. He, however, requested the Bench that in the event of Department’s decision is not acceptable to the assessee, the assessee be granted liberty to file fresh appeal before the Tribunal. The learned Departmental Representative has no objection in the submissions of the assessee.
I have heard the arguments of the parties, perused the material available on record and gone through the orders of the authorities below. In view of the submissions made by the learned Counsel for the assessee as aforesaid, permission is hereby granted to withdraw the present appeal filed by the assessee. I am further of the opinion that in case, the assessee does not succeed on the declaration filed under DTVsV Scheme, in that event, the assessee will be at liberty get this appeal restored in its original position by filing Miscellaneous Application and recall this order for hearing on merits.
In the result, appeal filed by the assessee is dismissed as withdrawn. Order pronounced in the open Court on 03/04/2025
Sd/- V. DURGA RAO JUDICIAL MEMBER NAGPUR, DATED: 03/04/2025
3 Bharatiya Barood Udyog ITA no.293/Nag./2024
Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Sr. Private Secretary ITAT, Nagpur
