DELHIVERY P.LTD(FORMERLY KNOWN AS SSN LOGISTIC P.LTD),NEW DELHI vs. ACIT, CIRCLE-24(1), NEW DELHI

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ITA 5554/DEL/2017Status: DisposedITAT Delhi07 December 2020AY 2014-154 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The Tribunal treated the appeal as withdrawn based on the assessee's declaration under the Vivad Se Vishwas Scheme. The appeal was dismissed, subject to the settlement of disputes under the scheme.

What were the facts?

The assessee filed an appeal against the disallowance of INR 64,05,536/- on account of delayed payment of employee's contribution to provident fund. The assessee later filed a declaration under the Vivad Se Vishwas Scheme for settlement of the dispute.

What were the issues?

Whether the disallowance on account of delayed payment of employee's PF contribution is valid when deposited before the due date of filing the return of income. The appeal was withdrawn due to the Vivad Se Vishwas Scheme.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

(A) This appeal by Assessee is filed against the order of Learned Commissioner of Income Tax (Appeals)-28, New Delhi, [“Ld. CIT(A)”, for short], dated 27.06.2017 for Assessment Year 2014-15. Grounds taken in this appeal of Assessee are as under:

“1. That the Ld. AO erred on the facts and circumstances of the case and in law in making disallowance of INR 64,05,536/- on account of delayed payment of employee’s contribution to provident fund which was duly deposited by the Appellant before the due date of filing of return of income for the subject assessment year and hence, is duly allowable as deduction in accordance with the provisions of section 43B of the Act.

2.

The Ld. CIT(A) erred on the facts and circumstances of the case and in law in upholding disallowance made by Ld. AO on account of delayed payment of employee’s contribution to provident fund amounting to INR 64,05,536/- which was duly deposited by the Appellant before the due date of filing of return of income for the subjection assessment year and hence, ITA No.- 5554/Del/2017. Delhivery P. Ltd. (formerly known as SSN Logistics P. Ltd. ) is duly allowable as deduction in accordance with the provisions of section 43B of the Act.

3.

That the Ld. CIT(A) erred on facts and circumstances of the case and in law by placing reliance upon decisions of non-jurisdictional High Courts and completely ignoring the binding decisions of jurisdictional High Court while upholding impugned disallowance. The Appellant craves leave to add, alter, vary, omit substitute or amend the above grounds of appeal, at any time before or at, the time of hearing, of the appeal, so as to enable your Honour to decide this appeal according to law.”

(B) At the outset, the Ld. Authorized Representative (“Ld. AR”, for short) for the Assessee informed us that the assessee has filed a declaration under Vivad Se Vishwas Scheme (“VSVS”, for short) for the settlement of subject matter of the dispute in this appeal and filed a declaration on 01.07.2020 in Form 1 giving all the required details to opt for the scheme; which is pending with the designated authority for acceptance and issuance of certificate in Form 3. The Ld. AR for assessee also drew our attention to letter dated October 20, 2020 (alongwith enclosures thereto) filed in Income Tax Appellate Tribunal (“ITAT”, for short) giving intimation for the same.

(B.1) At the time of hearing before us, the Ld. AR for assessee as well as the learned Senior Departmental Representative (“Ld. Sr. DR”, for short) submitted before us that this appeal may be treated as withdrawn and may be dismissed on account of the aforesaid VSVS; subject to settlement of the disputes in this appeal, under the aforesaid VSVS.

After due consideration, in view of the foregoing; and as both sides have agreed to this; we treat this appeal as withdrawn on account of the aforesaid VSVS. Accordingly, this appeal is dismissed, subject to settlement of the disputes in the appeal, under the aforesaid VSVS.

ITA No.- 5554/Del/2017. Delhivery P. Ltd. (formerly known as SSN Logistics P. Ltd. ) (B.2) Before we part, we hereby clarify, by way of abundant caution, that if for some reason the disputes under this appeal before us is not settled under the aforesaid VSVS, then the assessee will be at liberty to approach ITAT for restoration of this appeal, in accordance with law.

(B.3) With these directions, the aforesaid appeal of the assessee is dismissed, being treated as withdrawn.

(C) In the result, this appeal is dismissed.

This order was already pronounced on 7th December, 2020 in Open Court, in the presence of Representatives of both sides; after conclusion of the hearing.

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