HCL TECHNOLOGIES ITALY S.P.A (SUCCESSOR TO HCL ITARY S.R.L.),NEW DELHI vs. ACIT CRICLE INTERNATIONAL TAX 2(1)(1) , NEW DELHI
Facts
The assessee's appeals for AY 2019-20 and 2020-21 were initially dismissed ex-parte by the Tribunal. The assessee filed Miscellaneous Applications (MA) seeking recall of the dismissal, arguing that their explanation was acceptable. The main issue in the appeals pertains to the allowability of ESI/PF contributions, which the assessee claims were paid within the stipulated time.
Held
The Tribunal allowed the Miscellaneous Applications, recalling the ex-parte dismissal for a fresh hearing. Consequently, the matter regarding the ESI/PF contributions is remanded to the Assessing Officer. The AO is directed to examine the payment dates and allow the deduction in accordance with the Supreme Court's decision in Checkmate Services Vs. CIT. The appeals are allowed for statistical purposes.
Key Issues
1. Whether the ex-parte dismissal of appeals should be recalled based on the assessee's explanation. 2. Whether ESI/PF contributions, claimed to be paid within the stipulated time, are allowable deductions.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCHE “H”, NEW DELHI
Before: Sh. Saktijit DeyDr. B. R. R. Kumar
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHE “H”, NEW DELHI Before Sh. Saktijit Dey, Vice President Dr. B. R. R. Kumar, Accountant Member MA No. 484/Del/2023 (in ITA No. 518/Del/2023 : Asstt. Year: 2019-20) MA No. 485/Del/2023 (in ITA No. 519/Del/2023 : Asstt. Year: 2020-21) & ITA No. 518/Del/2023 : Asstt. Year: 2019-20 ITA No. 519/Del/2023 : Asstt. Year: 2020-21 Track Components Ltd., Vs DCIT, A-1/31, Azad Apartments, Circle 25(1), Opp. IIT Complex, Shri Aurobindo New Delhi. Marg, New Delhi – 110 016. (APPELLANT) (RESPONDENT) PAN No. AABCT2865J Assessee by : Sh. Yudhister Mehta, CA Revenue by : Sh. Vivek K. Upadhyay, Sr. DR Date of Hearing: 05.04.2024 Date of Pronouncement: 10.04.2024
ORDER Per Dr. B. R. R. Kumar, Accountant Member: Since, the issue involved in both the Miscellaneous Applications are similar, they were heard together and being adjudicated by a common order.
Heard the arguments of both the parties and perused the material available on record. The appeals of the assessee was dismissed vide order dated 11.10.2023 ex-parte. We have considered the facts on record and prayer of the ld. Counsel of the assessee that the explanation given by the assessee is
2 MA Nos. 484 & 485/Del/2023 ITA Nos. 518 & 519/Del/2023 Track Components Ltd. acceptable and came to a conclusion that the appeal needs to be heard by the Tribunal. Hence, the appeal is hereby recalled for fresh hearing.
ITA No. 518/Del/2023 ITA No. 519/Del/2023
The ld. Counsel for the assessee submitted that the contributions made on account of ESI/PF needs to be allowed as they have been paid before the stipulated time. The ld. DR submitted that the matter can be verified by the Assessing Officer. Hence, we remand the matter to the file of the Assessing Officer with directions to examine the date of payments and allow the deduction as per the judgment of Hon’ble Apex Court in the case of Checkmate Services Vs. CIT order dated 12.10.2022.
In the result, the Miscellaneous Applications of the assessee are allowed and the appeals of the assessee are allowed for statistical purpose. Order Pronounced in the Open Court on 10/04/2024.
Sd/- Sd/- (Saktijit Dey) (Dr. B. R. R. Kumar) Vice President Accountant Member Dated: 10/04/2024 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR
