KAMALA BIRI MANUFACTURING CO. PVT. LTD. ,KOLKATA vs. DCIT,CIR-8(1), KOLKATA. , KOLKATA
What did the Tribunal hold?
The Tribunal found that the Revenue authorities' decision was based on an incorrect auditor's report. Therefore, the matter was set aside and restored to the Assessing Officer for verification of facts and re-adjudication.
What were the facts?
The assessee's appeal was dismissed ex-parte by the CIT(Appeals) and a disallowance was made by the AO under section 143(1) regarding employees' EPF contribution. The assessee contended that the auditor's report on the due date of deposit was factually incorrect.
What were the issues?
Whether the disallowance of employees' EPF contribution is sustainable when based on an erroneous auditor's report regarding the due date of deposit.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Shri Rajpal Yadav, Vice-(KZ) & Shri Girish Agrawal
Per Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 03.07.2023 for A.Y. 2018-19.
Assessment Year: 2018-2019 Kamala Biri Manufacturing Co. Pvt. Ltd.
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.
Assessment Year: 2018-2019 Kamala Biri Manufacturing Co. Pvt. Ltd.
In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 11/01/2024.
Recent GST High Court judgments
Search GST case law →- M/S. Rohit Medical Systems vs. Commissioner Of Delhi Goods And Services Tax And Anr.Delhi · 28 Oct 2026
- Manoj Kumar Prop M K Steel Traders vs. Additional Commissioner, Central Goods And Services Tax & Anr.Delhi · 28 Oct 2026
- Shivam Kumar vs. The State Of BiharPatna · 28 Oct 2026
- M/S Rajkalpana Travels PVT. LTD. vs. Commissioner CGST, Delhi North CommissionerateDelhi · 28 Oct 2026
- Mahaveer Ispat Traders vs. Principal Commissioner Dgst Delhi Department Of Trade And Taxes Gnctd & Anr.Delhi · 28 Oct 2026