M/S. KAMAKSHI JUTE INDUSTRIES LIMITED,KOLKATA vs. ACIT, CIRCLE 1(1),, KOLKATA

ITA 3151/KOL/2025Status: DisposedITAT Kolkata10 March 2026AY 2017-2018Bench: SHRI SONJOY SARMA (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal, following its own earlier decision in a similar case for AY 2018-19, set aside the order of the CIT(A) and remanded the matter to the AO. The AO is directed to examine whether the payments were made within the due dates as per the Provident Fund Act/ESI Act and allow the deduction accordingly. Any remaining disallowances are to be confirmed.

What were the facts?

The assessee, engaged in manufacturing and trading jute goods, filed its return declaring NIL income. The Assessing Officer (AO) noted delayed payment of employees' contribution to PF and ESI, aggregating to Rs. 31,91,258/- plus interest of Rs. 7,945/-. The AO disallowed this amount under section 2(24)(x) r.w.s. 36(1)(va) of the Income Tax Act, 1961. The CIT(A) confirmed the disallowance.

What were the issues?

Whether the disallowance of employees' contribution to PF & ESI made due to delayed deposit is justified when the payment was made as per the interpretation of the due date as per relevant Acts.

Which sections of the Income-tax Act were involved?

Section 2(24)(x),Section 36(1)(va),Section 250,Section 143(2),Section 142(1),Section 115JB,Section 143(3)

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Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH AT KOLKATA

Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the Assessee is against the order of the Addl/JCIT(A)-10, Mumbai [hereinafter referred to as Ld. ‘Addl/JCIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2017-18 dated 10.10.2025. The assessee had sought adjournment but the same was withdrawn and the case was heard.

2.

The Assessee is in appeal before the Tribunal raising the following grounds of appeal:

“1. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was vehemently wrong and unjustified in confirming the addition of Rs. 31,91,258/- made by the Ld. A.O. invoking the provision of se

The order continues below.

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