KAMALA BIRI MANUFACTURING CO. PVT. LTD. ,KOLKATA vs. DCIT,CIR-8(1), KOLKATA. , KOLKATA

The solitary grievance of the assessee is that the ld. CIT(Appeals) has erred in confirming the disallowance of Rs.12,34,535/- on the ground that employees’ contribution to EPF was not deposited by the assessee within due date provided under those Acts.

The ld. Counsel for the assessee submitted that the appeal of the assessee has been dismissed by the ld. CIT(Appeals) ex- parte and the disallowance was made by the ld. Assessing Officer by way of a prima facie adjustment under section 143(1). Both the authorities have assumed payment of this contribution to the respective EPF Account in an erroneous manner. The auditor has reported the due date which is contrary to the factual situation. Therefore, unless all the facts are looked into by any of the authorities, the disallowance is not sustainable.

With the assistance of ld. Representatives, we have gone through the record carefully. The issue involved in the present appeal is whether the assessee has actually made the payment of employees’ contribution in EPF Account within the due date available under the EPF Act or not. The finding of the Revenue authorities is based on an incorrect reporting of the auditor as alleged by the assessee. Therefore, we set aside both the orders and restore the issue to the file of ld. Assessing Officer. The ld. Assessing Officer shall verify the facts and thereafter re- adjudicate the issue.

In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 11/01/2024.