M/S. J AND H PROJESTS PVT. LTD.,AHMEDABAD vs. THE DCIT, CPC, BENGLURU

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ITA 217/AHD/2021Status: DisposedITAT Ahmedabad11 May 2022AY 2019-203 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 late payment of employees' contribution to PF and ESIC, even if made before filing the return, is not eligible for deduction. This decision was based on the jurisdictional High Court's ruling in a similar case.

What were the facts?

The assessee company made late payments of employees' contribution to PF and ESIC. The assessee claimed the deduction, stating the payment was made before filing the return of income.

What were the issues?

Whether late payment of employees' contribution to PF and ESIC is allowable as a deduction under the Income Tax Act, despite being paid before the due date for filing the return.

Which sections of the Income-tax Act were involved?

Section 43B,Section 36(1)(va)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED&

For Respondent: Shri R. R. Makwana, Sr. DR
Hearing: 11.05.2022Pronounced: 11.05.2022

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER (Assessment Year: 2019-20) M/s. J & H Projects Pvt. Ltd. Vs. CIT(A)-NFAC B-16, Mangal Estate Lions School Pratyaksh Kar Bhavan, Cross Road, GIDC Naroda, Ambawadi, Ahmedabad Ahmedabad [PAN No.AADCJ0542Q] (Appellant) .. (Respondent) Assessee by : None Revenue by : Shri R. R. Makwana, Sr. DR Date of Hearing 11.05.2022 Date of Pronouncement 11.05.2022 O R D E R PER Ms. MADHUMITA ROY - JM:

The instant appeal filed by the assessee is directed against the order dated 28.07.2021 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi arising out of the order dated 17.12.2019 passed by the Asst. DIT(CPC), Bengaluru under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for A.Y. 2019-20.

2.

We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record.

J&H Projects Pvt. Ltd. vs. CIT Asst.Year –2019-20 - 2 - 3. This matter relates to disallowance of Rs. 17,28,197/- in respect of the employees’ contribution to PF and ESIC which was paid late instead of with due date as per the statutory provision.

4.

At the time of call, none appears on behalf of the assessee neither any written notes of submissions was filed before us. Further that it appears from the fact that employees’ contribution has not been paid within the due date prescribed under the provision of law though, according to the assessee it was paid before filing of return for the year under consideration. We find the identical facts and circumstances of the case the ground of appeal has already been decided against the assessee by the Hon’ble Jurisdictional High Court in the case of CIT vs. GSRTC, reported in 366 ITR 170. While dealing with this particular aspect of the matter the Hon’ble Court was pleased to observe as follows:

“"Section 43B, read with section 36(1)(va) of the Income-tax Act, 1961 - Business disallowance — Certain deductions to be allowed on actual payment (Employees contribution) - Whether where an employer has not credited sum received by it as employees' contribution to employees' account in relevant fund on or before due date as prescribed in Explanation to section 36(1)(va), assesses shall not be entitled to deduction of such amount though he deposits same before due date prescribed under section 43B i.e., prior to filing of return under section 139(1) -Held, yes - Assesses State transport corporation collected a sum being provident fund contribution from its employees - However, it had deposited lesser sum in provident fund account — Assessing Officer disallowed same under section 43B -However, Commissioner (Appeals) deleted disallowance on ground that employees contribution was deposited before filing return - Whether since assessee had not deposited said contribution in respective fund account on date as prescribed in Explanation to section 36(1 )(va), disallowance made by Assessing Officer was just and proper - Held, yes [Para 8] [In favour of revenue]”

Respectfully relying upon the order passed by the Hon’ble Jurisdictional High Court, thus, on the identical facts we find it fit and J&H Projects Pvt. Ltd. vs. CIT Asst.Year –2019-20 - 3 - proper to dismiss this ground of appeal filed by the assessee. Hence, the appeal filed by the assessee is dismissed.

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