KANKARIA MANINAGAR NAGRIK SAHAKARI BANK LIMITED,AHMEDABAD vs. THE ADIT, CPC, BANGALORE PRESENT JURIDICTION THE DCIT, CIRCLE-2(1)(1), AHMEDABAD

The registry has noted that there is delay of three days in filing the above appeal. The assessee submitted that the impugned order was communicated by e-mail on 12.12.2022 at 18:06 hours post closure of the banking hours. The appeal ought to have been filed on 11.02.2023 which is a Saturday and a non-working day for the appellant bank. Thus appeal was filed on 13.02.2023 by oversight mistake and pray to condone the same.

The solitary issue in this appeal is late payment of Employees Provident Fund for the month of August and September 2017. In the Audit Report, it is mistakenly mentioned the date of payment as 08.08.2018 and 08.09.2018 instead of the year 2017. Thus there is no delay in remitting the Employee’s Contribution to the Provident Fund Authority, just because of the typographical error in the Audit Report, the CPC made the disallowance of Rs.3,52,165/- and demanded tax thereon in the proceedings made u/s. 143(1) of the Act. The assessee filed a Rectification petition before the CPC, however the same was rejected on the ground that on verification, it is seen that there is no prima facie error in the Intimation. Therefore rejected the Rectification application filed by the assessee bank.

Aggrieved against the same, the assessee filed an appeal before Ld. NFAC which is also confirmed the addition.

Ld. Counsel Shri Rahul Patel appearing for the assessee has taken us through the Paper Book wherein at Page Nos. 34 & 35, receipts generated by Employee’s Provident Fund Organization for the month of July 2017 and August 2017 wherein the employees share of contribution were remitted by the assessee on 08.08.2017 at 12:36 hours and 08.09.2017 at 19:46 hours. Thus the Ld. Counsel pleaded that there is no delay in remitting the PF contribution by the assessee except wrongly quoted the year “2018” in the Audit Report and requested to delete the addition.

Ld. Sr. D.R. V.K. Mangla appearing for the Revenue submitted that this Challan was not produced before the Lower Authorities and the matter be set aside back to the file of Jurisdictional Assessing Officer for verification.

We have gone through the materials available on record and after perusal of the Challans issued by Employees Provident Fund Organization for the Month of July and August 2017. The employee’s share of contribution were made on 08.08.2017 and 08.09.2017 which are well within the time limit prescribed under the respective Act. However the disallowances being made by CPC only on the ground that the Audit Report has mistakenly recorded the year as “2018” instead of 2017. Thus the above addition made by CPC is not correct in law. Since Provident Fund receipts are filed before us for the first time, we deem it fit to set aside the matter back to the file of Jurisdictional Assessing Officer to verify the claim made by the assesse and allow the claim in accordance with law by giving one proper opportunity to the assessee.

Needless to say, the assessee should file the required details before the Jurisdictional Assessing Officer for passing fresh order.

In the result, the appeal filed by the Assessee is allowed for statistical purpose.