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Income Tax Appellate Tribunal, “A” BENCH: KOLKATA
Before: Shri Sanjay Garg & Shri Rajesh Kumar]
Per Rajesh Kumar, AM:
This is the appeal preferred by the assessee against the order of the Ld. Ld. Commissioner of Income Tax (Appeal)-2, Coimbatore (hereinafter referred to as the Ld. CIT(A)”] dated 27.09.2023 for the AY 2018-19.
The only issue involved in the present appeal before us is against the order of Ld. CIT(A) confirming the addition of Rs. 1,57,509/- as made by the AO on account of late payment of PF/ESI.
Assessment Years: 2018-19 SREI Equipment Finance Limited 3. After hearing the rival contentions and perusing the material on record, we find that the addition made by the AO was in respect of disallowance of employees contribution to ESI on the ground of late payment. However we note from the records before us that the last day of depositing ESI’s contribution happened to be Sunday and therefore the payment was made immediately in the next following date i.e. Monday. The detail is extracted below:
Month of Amount Due Date of Actual date of No. of days of deduction deducted (Rs.) payment payment delay Sept’2017 1,17,518/- 15.10.2017 16.10.2017 0 (Sunday- Sept’2017 23,050, 17.10.2017 1 Holiday) Sept’2017 16,941 17.10.2017 1 It is clear from the table that Rs. 1,17,518/- which was due on 15.10.2017 was paid on 16.10.20217 and therefore there is no delay in making the payment. In respect of other two payments of Rs. 23,050/- and Rs. 16,941/- , there is delay of one day as payment were made on 17.10.2017. The case of the assessee is squarely covered by the decision of Co-ordinate Bench of Delhi in the case of GD Foods and Manufacturing (India) Pvt. Ltd. vs. ADIT [2023] 152 taxmann.com 323 (Delhi-Trib.) (10.07.2023) in which the Co-ordinate Bench held as under:
“11. Thus, in our opinion, considering the fact that the due date of de positing the contribution of ESIC & EPF falls on Sunday and gazette holiday, the said delay of one day deserves to be condoned as per Section 10 of General Causes Act. Further it is also observed that the assessee has no intention not to deposit the contribution of ESI & EPF well within the time, depositing the contribution very next day of Holiday proves the bona-fide of the assessee Therefore in our opinion, the authorities have committed error in disallowing the deposit made with one day delay where the due date under respective acts falls either on Sunday or on gazette holiday.
In view of the above discussion, we allow Ground no. 3of the assessee and delete the disallowance of delay deposit of one day on account of public holiday/Sunday on ESIC of Rs. 3,89,086/- and EPF of Rs . 15,47,915/-.”
Assessment Years: 2018-19 SREI Equipment Finance Limited Accordingly we set aside the order of Ld. CIT(A) and direct the AO to allow the claim of Rs. 1,17,518/- which was paid on 16.10.2017. The appeal is partly allowed.
In the result, the appeal of the assessee is partly allowed.
Order is pronounced in the open court on 19th February, 2024