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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
M/s. Assyst International Pvt. Ltd. vs DCIT, Corporate Circle -1(1) Kochi II/138-D, NH -47, Muttam Thaikkattukkara P.O. Kochi 683106 PAN – AADCA0592R (Appellant) (Respondent) Assessee by: Ms. K.Parvathy Ammal, CA Revenue by: Smt. J.M. Jamuna Devi, Sr. DR Date of hearing: 02.03.2023 Date of pronouncement: 08 .03.2023 O R D E R Per: George George K., J.M. This appeal at the instance of the assessee is directed against the order of the CIT(A)/NFAC, Delhi dated 18.05.2022 passed under Section 250 of the Income Tax Act, 1961 (the Act). The relevant assessment year is 2019-20.
There is delay of ‘64’ days in filing this appeal. The assessee has filed a petition for condonation of delay and also an affidavit of CFO of the assessee company stating, therein, the reasons for belated filing of this appeal. On perusal of reason stating for affidavit for late filing of this appeal, we are view that there is ‘sufficient cause’ and no latches can be attributable to the assessee. Hence, we condon delay of ‘64’ days in filing this appeal and proceed to dispose of the same on merits.
M/s. Assyst International Pvt. Ltd. 3. The assessee has raised several grounds of appeal. All the grounds relate to the solitary issue, whether the assessee is entitled to deduction of Rs.4,31,783/- being employees’ contribution paid beyond the ‘due date’ as prescribed in the respective Acts, PF, ESI, etc.
The brief facts of the case are as under: -
The assessee, a company, filed its return of income for AY 2019-20 on 31.10.2019 declaring an income of Rs,3,86,80,844/-. The AO/CPC passed an intimation u/s. 143(1) of the Act adding an amount of Rs.4,31,783/- on account of disallowance on account of late payment of PF/ESI under Section 36(1)(va) of the Act under the respective Act.
Aggrieved by the said disallowance the assessee filed appeal before the first appellate authority. The CIT(A) dismissed the appeal of the assessee by observing as under: -
“8.1 I have carefully considered the facts of the case and the intimation order u/s 143(1). The appellant has only filed an appeal in the form No. 35. The appellant has not filed any written submission, despite giving Four (04) opportunities. Therefore, as not interference is required, disallowance of Rs.4,31,783/- made by the AO is therefore sustained.” 6. Aggrieved, assessee filed the present appeal before the Tribunal. The learned A.R. relied on the grounds raised.
The learned D.R., on the other hand, submitted that the issue is covered in favour of the Revenue by the judgement of the Hon'ble Apex Court in the case of Checkmate Services (P) Ltd. vs. CIT (2022) 143 taxmann.com 178(SC).
We have heard the rival contentions and perused the material on record. The issue raised in this appeal is no longer res-integra. The Hon'ble Apex Court in the case of Checkmate Services (P) Ltd. (supra) had held that M/s. Assyst International Pvt. Ltd. the employees’ contribution paid by the assessee beyond the due date prescribed under the PF/ESI Act cannot be allowed a deduction. In the light of the judgement of the Hon'ble Apex Court, we reject the contention of the assessee.
In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open Court on 08th March, 2023.