EVEREST BUSINESS ADVISORY INDIA PVT. LTD.,GURGAON vs. ACIT, CIRCLE 7(1), NEW DELHI

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ITA 1984/DEL/2023Status: DisposedITAT Delhi01 May 2024AY 2021-22Bench: the CIT(A), who allowed relief of Rs.1,75,17,348/- and upheld remaining disallowance of Rs.15,03,314/-. Aggrieved, the assessee/appellant filed this appeal challenging the disallowance of Rs.15,03,314/- upheld by the Ld. CIT(A). 3. Heard the rival parties and perused the case record. 4. The issue before us is in respect of disallowance of Rs.15,03,314/- made u/s 36(1)(va) of the Act. The Ld. AR vide its submission dated 30.04.2024 withdrew the appeal to which, the Ld. DR had not had any obj3 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal noted that the primary issue was the disallowance under section 36(1)(va) of the Act. However, the Ld. AR for the assessee filed a submission to withdraw the appeal, and the Ld. DR had no objection to this withdrawal. Consequently, the appeal was dismissed as withdrawn.

What were the facts?

The assessee's return of income was processed under section 143(1) of the Income Tax Act, leading to an upward adjustment by the Assessing Officer due to inconsistencies and delays in depositing employee contributions to provident/superannuation funds. The CIT(A) granted partial relief, but a disallowance of Rs. 15,03,314/- was upheld, which the assessee challenged before the Tribunal.

What were the issues?

Whether the disallowance of Rs. 15,03,314/- made under section 36(1)(va) of the Income Tax Act, concerning delayed employee contributions to statutory funds, was correctly upheld by the CIT(A).

Which sections of the Income-tax Act were involved?

Section 143(1),Section 36(1)(va)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘B’: NEW DELHI

Hearing: 01/05/2024Pronounced: 01/05/2024

The appeal filed by the assessee is directed against the order, dated 10.05.2023, of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), New Delhi [In Short ‘the CIT(A)’].

2.

The assessee/appellant filed its return of income declaring income of Rs.11,35,12,610/- which was processed u/s 143(1) of the Income Tax Act [for short as the ‘Act’] at income of Rs.13,25,33,270/-. In the processing u/s 143(1) of the Act, the Assessing Officer (CPC) made an upward adjustment of Rs.1,90,20,662/- on the reasoning that there were inconsistencies in the sums received from the employees and consequential deposits thereof in the statutory provident fund and or superannuation fund, etc. and there were also delays in payments of some employees’ contributions to the statutory provident fund. Aggrieved, the assessee/appellant filed appeal before the CIT(A), who allowed relief of Rs.1,75,17,348/- and upheld remaining disallowance of Rs.15,03,314/-. Aggrieved, the assessee/appellant filed this appeal challenging the disallowance of Rs.15,03,314/- upheld by the Ld. CIT(A).

3.

Heard the rival parties and perused the case record.

4.

The issue before us is in respect of disallowance of Rs.15,03,314/- made u/s 36(1)(va) of the Act. The Ld. AR vide its submission dated 30.04.2024 withdrew the appeal to which, the Ld. DR had not had any objection.

5.

In view of the above, the appeal of the assessee is dismissed as withdrawn. Order pronounced in open Court on 1st May, 2024

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