PANJIKKAYIL CHERUVAI SUMESH GOVIND,KOZHIKODE vs. THEACIT, KOZHIKODE

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ITA 78/COCH/2022Status: DisposedITAT Cochin30 November 2022AY 2019-202 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the issue of disallowance for late payment of employees' contribution to ESI/PF is now settled in favor of the revenue by the Hon'ble Supreme Court's decision in Checkmate Services P. Ltd. Therefore, the disallowances stand confirmed.

What were the facts?

The assessee made late payments of employees' contribution to ESI/PF, which was reported by the Tax Auditor. The CPC made additions for these late payments, and the CIT(A) confirmed these additions for AYs 2018-19 and 2019-20.

What were the issues?

The primary issue was whether disallowance under Section 36(1)(va) is warranted for the late payment of employees' contribution to ESI/PF.

Which sections of the Income-tax Act were involved?

Section 36(1)(va)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: HON’BLE SHRI SATBEER SINGH GODARA, J.M & HON’BLE SHRI MANOJ KUMAR AGGARWAL, A.M

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by assessee for Assessment Years (AYs) 2018-19 & 2019-20 arises out of separate orders of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 07-12-2021 in the matter of intimations issued by Centralized Processing Center, Bengaluru making addition of late payment of employees’ contribution to ESI / PF by the assessee which has been reported by Tax Auditor.

1.

& 78/Coch/2022 - 2 - 2. At the time of hearing, none appeared for assessee. The Ld. Sr. DR submitted that this issue is now covered against the assessee by the recent decision of Hon’ble Supreme Court in bunch of appeals titled as Checkmate Services P. Ltd. Vs CIT (Civil Appeal No.2833 of 2016 dated 12.10.2022). Having considered the same, the appeals are disposed-off as under.

3.

For AY 2018-19, Centralized Processing Center (CPC) processed assessee’s return of income u/s 143(1) and made disallowance u/s 36(1)(va) for late payment of employees’ contribution to ESI / PF by the assessee which has been reported by Tax Auditor. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us. Similar additions were made in AY 2019-20 which were also confirmed by Ld. CIT(A) on similar lines.

4.

We find that this issue is now settled in revenue’s favor by the cited decision of Hon’ble Supreme Court and therefore, the disallowance, in both the years, stand confirmed.

5.

In the result, both the appeals stand dismissed. Order pronounced on 30th November, 2022.

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