NISHANT SECURITY AND ALLIED SERVICES PRIVATE LIMITED,NEW DELHI vs. ITO,WARD-18(3), NEW DELHI

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ITA 1447/DEL/2023Status: DisposedITAT Delhi27 May 2024AY 2018-19Bench: DR. B.R.R. KUMAR (Accountant Member), MS. MADHUMITA ROY (Judicial Member)2 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 upheld the order of the CIT(A), noting that the assessee admittedly deposited the Employee's Contribution to PF/ESI after the prescribed due dates. Relying on the Supreme Court judgment in M/s. Checkmate Services Pvt. Ltd. vs. CIT, the Tribunal found no infirmity in the disallowance and held it to be just and proper.

What were the facts?

The assessee, Nishant Security and Allied Services Pvt. Ltd., appealed against the disallowance of Rs. 37,18,422/- on account of late payment of Employee's Contribution to ESI/PF for A.Y. 2018-19. This disallowance was initially made by the Assessing Officer and subsequently confirmed by the Commissioner of Income Tax (Appeals)-NFAC.

What were the issues?

Whether the disallowance on account of late payment of Employee's Contribution to ESI/PF, made after the statutory due dates, is justified.

Which sections of the Income-tax Act were involved?

Section 250,Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

Before: DR. B.R.R. KUMAR & MS. MADHUMITA ROY

For Appellant: Shri Upvan Gupta, C.A
For Respondent: Shri Anshul, Sr. D.R
Hearing: 15.05.2024Pronounced: 27.05.2024

O R D E R

PER MS. MADHUMITA ROY – JUDICIAL MEMBER :

1.

The instant appeal filed by the assessee is directed against the order dated 09.03.2023 passed by the Commissioner of Income Tax (Appeals)-NFAC, Delhi under Section 250 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) arising out of the assessment order dated 25.02.2022 passed by the ITO, Ward – 18(3), Delhi under Section 154 of the Act for the Assessment Year (A.Y.) 2018-19 whereby and where under, the disallowance on account of late payment of ESI/PF made by the Assessing Officer to the tune of Rs.37,18,422/- has been confirmed for A.Y. 2018-19.

Nishant Security and Allied Services Pvt. Ltd. vs.ITO Asst.Year –2013-14 - 2 - 2. At the time of hearing of the instant appeal, it was submitted by the Learned DR that the Learned CIT(A) passed the impugned order relying upon the judgment passed by the Hon’ble Apex Court in the case of M/s. Checkmate Services Pvt. Ltd. vs. CIT in Civil Appeal No.2833 of 2016 dated 12.10.2022 as the appellant admittedly deposited the Employee’s Contribution to PF/ESI after the prescribed due dates under the relevant Acts. Such contention made by the Learned AR has not been able to be controverted by the Learned AR. Hence, in view of the judgment passed in the matter of M/s Checkmate Services Pvt. Ltd (supra), we do not find any infirmity in the order passed by the Learned CIT(A) in upholding the order of disallowance made by Learned AO. The same is found to be just and proper so as to warrant interference.

3.

In the result, appeal of assessee is dismissed.

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