M/S. ARVIND GOODHILL SUIT MANUFACTURING LTD.,AHMEDABAD vs. THE ACIT, CIRCLE-1(1)(1), AHMEDABAD

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ITA 467/AHD/2020Status: DisposedITAT Ahmedabad02 May 2022AY 2017-182 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 followed the jurisdictional High Court's decision which held that such delayed payments are not deductible. Therefore, the addition made by the AO was confirmed.

What were the facts?

The assessee contended that their employees' contribution to ESI and PF, paid after the due date under the respective Acts but within the due date for filing the return of income, should not be disallowed. The AO made an addition on this ground.

What were the issues?

Whether employees' contribution to ESI and PF, paid after the due date under the respective Acts but before the due date of filing the return of income, is allowable as a deduction.

Which sections of the Income-tax Act were involved?

Section 139(1)

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, “A” BENCH, AHMEDABAD

Before: SHRI PRAMOD M. JAGTAP & SHRI T.R. SENTHIL KUMAR

For Appellant: Shri Biren Shah, AR
Hearing: 02/05/2022

अपीलाथ�/ (Appellant) �� यथ�/ (Respondent) Assessee by : Shri Biren Shah, AR Revenue by : Shri S.S. Shukla, Sr.DR सुनवाई क� तार�ख/Date of Hearing : 02/05/2022 घोषणा क� तार�ख /Date of Pronouncement: /05/2022 आदेश/O R D E R

PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER

1.

This appeal is filed by the assessee against order dated 5.8.2020 passed by the Ld.Commissioner of Income-tax (Appeals)-1, Ahmedabad [for short “Ld.CIT(A)] in appeal No.CIT(A)-1, Ahmedabad/10366/2019-20 relating to the assessment year 2017- 18.

2.

Solitary ground raised by the assessee in this appeal is that the ld.CIT(A) erred in confirming addition of Rs.1,07,59,249/- being employees’ contribution to Employee State Insurance and Provident Fund made by the AO on the ground that the aforesaid payment was made after due date prescribed under the relevant Act, even though

2 the payment was made within the time prescribed under section 139(1|) of the Act.

3.

The ld.counsel for the assessee fairly submitted that this issue is already covered against the assessee by the decision of jurisdictional High Court in the case of Gujarat State Road Transport Corporation Ltd. Vs. CIT, 366 ITR 170, against which assessee’s SLP is pending before the Hon’ble Supreme Court.

4.

Respectfully following the decision of the jurisdictional High Court cited (supra) on the issue of payment of employees’ contribution to ESI and PF, the ground of appeal raised by the assessee is hereby rejected. Thus, the appeal filed by the assessee is dismissed.

5.

In the result, appeal of the assessee is dismissed.

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