ZAHIR KASAM MEMON,VASAI vs. ADDL-JCIT (A)-2 CHENNAI, CHENNAI

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ITA 471/CHNY/2024Status: DisposedITAT Chennai06 May 2024AY 2019-20Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI (Judicial Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The tribunal held that the CIT(A)'s order, which confirmed the disallowance of employee's contribution based on Supreme Court and Madras High Court precedents, does not require interference. The tribunal also noted consistency with its own prior decisions.

What were the facts?

The assessee's appeal concerns AY 2019-20. The CPC disallowed Rs. 208.26 Lacs for failure to deposit employer's/employee's contribution to ESI/PF before due dates. The CIT(A) deleted the disallowance for employer's contribution but confirmed it for employee's contribution.

What were the issues?

Whether disallowance of employee's contribution to ESI/PF not deposited by due dates is permissible under Section 143(1) and if it aligns with judicial precedents.

Which sections of the Income-tax Act were involved?

Section 143(1)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM

आयकर अपीलीय अिधकरण “ए” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय "ी मनोज कुमार अ"वाल ,लेखा सद# एवं माननीय "ी मनु कुमार िग&र, "ाियक सद# के सम'। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ (िनधा(रण वष( / Assessment Year: 2019-20) Mr.Zahir Kasam Memon Addl / JCIT (A)-2, बनाम Memon Brothers, Piniarwada PNE-C-(72)(1) Kumbharwada, Zenda Bazar, Chennai. / Vs. Vasai West, Maharashtra – 401 201. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AEMPM-1407-R (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant by : None " थ"कीओरसे/Respondent by : Shri AR V Sreenivasan (Addl.CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 30-04-2024 घोषणाकीतारीख /Date of Pronouncement : 06-05-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 19-12-2023 in the matter of an intimation issued by CPC u/s 143(1) of the Act on 14-07-2020. At the time of hearing none appeared for the assessee. The registry has noted a delay of 5 days in the appeal. Considering the period of delay, the delay is condoned and the appeal is admitted for adjudication on merits.

2.

In the intimation, CPC disallowed a sum of Rs.208.26 Lacs on account of failure to deposit Employer’s / Employees’ contribution to ESI / PF before due date as specified in respective welfare acts. This amount include Employee’s Contribution of Rs.111.01 Lacs which was not deposited by due dates as specified in relevant acts. The Ld. CIT(A) deleted disallowance of Rs.97.25 Lacs which represent Employers’ contribution since the same was deposited before due dates as specified u/s 139(1). However, the disallowance of Employee’s Contribution was confirmed by following the decision of Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. (143 Taxmann.com 178). The Ld. CIT(A) also held that this adjustment could be made u/s 143(1) in terms of decision of Hon’ble High Court of Madras in the case of AA520 Veerappampalayam PACS Ltd. (138 Taxann.com 571). Aggrieved, the assessee is in further appeal before us.

3.

Since the impugned order follows binding judicial precedents and the same is also in consonance with the view of Chennai Tribunal in M/s Shree Gokulam Chit & Finance Co. Pvt. Ltd. (MA Nos. 97/Chny/2023 & ors. dated 31.07.2023), the same do not require any interference on our part. 4. The appeal stand dismissed. Order pronounced on 6th May, 2024 (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) "ाियक सदस्य / JUDICIAL MEMBER लेखा सद# / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 06-05-2024 DS आदेशकीAितिलिपअ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु=/CIT 4. िवभागीय"ितिनिध/DR 5. गाडBफाईल/GF

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