CHEMICAL PROCESS PIPING PVT ,MUMBAI vs DCIT,CIRCLE 14(1)(2), MUMBAI

Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI SANDEEP SINGH KARHAIL, HON’BLE

For Appellant: Shri Nishit Gandhi, A/R

Hearing: 15/07/2024Pronounced: 15/07/2024

PER NARENDRA KUMAR BILLAIYA, AM: I.T.A. No. 2421 &2422/Mum/2024 are two separate appeals by the assessee preferred against two separate orders of the ld. CIT()A, Addl/JCIT(A)-3, Ahmedabad, dt. 13/03/2024, pertaining to Assessment Years 2017-18 and 2018-19. 2. Since common grievance is involved in both these appeals, they were heard together and are disposed off by way of this common order for the sake of convenience and brevity.

The common grievance relates to the disallowance of employees’ contribution to PF/ESIC u/s 36(1)(va) of the Act.

The disallowance is based upon the decision of the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. v. CIT [2022] 143 taxmann.com 178. I.T.A. No. 2421 &2422/Mum/2024 2

Before us, the ld. Counsel for the assessee contended that because the due date was a public holiday, as per the General Clauses Act, the nest working day becomes the due date and, therefore, any payment made as per the General Clauses Act, is eligible for the claim of deduction. The ld. Counsel further pointed out that the portal/website of the PF/ESIC was having technical issues and because of which the payments could not be made electronically. In support, affidavit of Shri Sanjeev Laxmichand Maru, Consultant, has already been filed.

We have given a thoughtful consideration to the order of the authorities below. We are of the considered view that the impugned quarrel has been now well settled by the decision of the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. (supra). However, at the same time if the assessee was in a position as mentioned hereinabove then, it becomes a case of impossibility of performance.

CHEMICAL PROCESS PIPING PVT ,MUMBAI vs. DCIT,CIRCLE 14(1)(2), MUMBAI