PURPLETALK INDIA PRIVATE LIMITED,HYDERABAD, TELANGANA vs. DCIT., CIRCLE-5(1), HYDERABAD

The learned AR submitted that the issue is covered in favour of the assessee by the decision of the Tribunal passed in the case of the assessee for the A.Y 2019-20 and drew our attention to Para 4, 5 &6 of the said order which reads as under:

On the other hand, the learned DR drew our attention to the order passed by the learned CIT (A) dismissing the appeal of the for the reasons mentioned which read as under:

The learned DR submitted that the decision of the learned CIT (A) was based on the decision of the Hon'ble Supreme Court rendered in the case of Checkmate Services (P) Ltd vs. CIT in appeal No.2383 of 2016 dated 12.10.2022. It was submitted that the decision given earlier by the Tribunal in the case of the assessee was much prior to the decision by the Hon'ble Supreme Court on 12.10.2022.

In rebuttal, the learned AR submitted that the decision given by the Tribunal in the case of the assessee should be applied as it is binding on the Tribunal.

We have heard the rival arguments made by both the sides and perused the available material on record. Undoubtedly in the present case, the assessee has deposited the Employee’s Contribution after the due date prescribed under the Act. The above said fact has been duly submitted by the assessee himself and which is forming part of the learned CIT (A)’s order by way of written submission. At page 6 to 7 of the order of the learned CIT (A), the following 3 tables have been reproduced by the learned CIT (A) on the basis of the written submission filed by the assessee.

From the perusal of the judgment in the case of Checkmate Services (P) Ltd (Supra), it is abundantly clear that the deduction u/s 43B is only admissible if the assessee had deposited before the due date provided by the parent act i.e. PF & ESI. In the present case, the assessee has not deposited the amount as is clear from the above noted tables. Therefore, the issue is required to be decided against the assessee.

The argument of the learned AR for applying the decision of the Tribunal in assesses own case for the A.Y 2019-20 is completely fallacious and is rejected by the Hon'ble Supreme Court in the case of Checkmate Services (P) Ltd (Supra), the issue had been conclusively settled. We may fruitfully refer that the judgment of the Apex Court is binding on all the Courts below and the Tribunals. In the present case, the Hon'ble Supreme Court once has categorically held that the assessee is only entitled to the rebate/deduction u/s 43B of the Act, if the amount had been paid on or before the due date as provided by the parent Act of ESI/PF. Once the issue has been decided by the Apex Court, then the decision given by the Tribunal in assessee’s own case loses its significance and is no more biding on the Tribunal being contrary to the law laid down by the Hon'ble Supreme Court. In view of the above, this contention of the assessee is not having any merit and accordingly rejected.