PENMATSA RAMA KRISHNA VARMA,BHIMAVARAM vs. ACIT, CIRCLE-1, RAJAHMUNDRY

ITA 81/VIZ/2022Status: DisposedITAT Visakhapatnam16 February 2023AY 2017-18Bench: SHRI DUVVURU RL REDDY, HON’BLE (Judicial Member), SHRI S BALAKRISHNAN, HON’BLE (Accountant Member)9 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that delayed payment of employee PF/ESI contributions are disallowable as per the Supreme Court's decision in Checkmate Services. However, the receipt of SBNs as professional fees during demonetization was not illegal and therefore not taxable under Section 68.

What were the facts?

The assessee received employee contributions for PF and ESI late, and also deposited cash in Specified Bank Notes (SBNs) during demonetization. The Assessing Officer disallowed the late PF/ESI contributions and added the SBN deposits to income under Section 68.

What were the issues?

Whether delayed deposit of employee's PF/ESI contributions are disallowable, and if cash deposits in SBNs during demonetization are taxable as unexplained income.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 143(2),Section 142(1),Section 68,Section 43B,Section 36(1)(va),Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

Hearing: 07/02/2023

PER S. BALAKRISHNAN, Accountant Member :

This appeal filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [CIT(A)] in DIN & Order No.ITBA/NFAC/S/50/2021- 22/1041153996(1), dated 21/3/2022 arising out of the order passed U/s. 143(3) of the Act for the AY 2017-18. 2

2.

Brief facts of the case are that the assessee is an individual

and proprietor of Varm

The order continues below.

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