ACIT, CHENNAI vs. PERI SOFTWARE SOLUTIONS PRIVATE LIMITED, CHENNAI

The Revenue filed this appeal against the order of the Commissioner of Income Tax (Appeals)-3, Chennai in dated 27.10.2017 for assessment year 2013-14.

M/s. Peri Software Solutions Pvt. Ltd., the assessee, is engaged in the business of software development. While making the assessment for assessment year 2013-14, the Assessing Officer, inter alia, found that the assessee claimed Employees contribution for PF & ESI, totalling at Rs. 51,56,335/-, which were paid not within the due date mentioned as per section 36(1)(va) and hence he disallowed. Aggrieved, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) following the jurisdictional High Court decision in the case of CIT vs Industrial Security & Intelligence Pvt Ltd., vide & 2049/Mds/2014 dated 24.07.2015, wherein, it was held that “if the assessee had deposited Employees contribution towards PF & ESI after the due date as prescribed under the relevant Act, but before the due date of filing return under the Income Tax Act, no disallowance could be made” and also the decision of the Chennai tribunal vide ITA No. 754/Mds/2016 dated 03.06.2016 allowed the assessee’s appeal. Aggrieved against that order, the Revenue filed this appeal.

We heard the rival submissions. Since, the Ld. CIT(A) applied the ratio of the jurisdictional High Court decision, we do not find any reason to interfere with his order. The Revenue’s appeal is dismissed.

In the result, the Revenue’s appeal is dismissed.