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Income Tax Appellate Tribunal, PANAJI BENCH, PANAJI
Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY
आदेश / ORDER
PER R.S. SYAL, VP :
These two appeals by the assessee are directed against the orders passed by the ld. CIT(A) in National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter called ‘the Act’) in relation to the assessment years 2018-19 & 2019-20. Both the appeals are based on similar facts and common grounds of appeal, we are, therefore, proceeding to dispose them off by this consolidated order for the sake of convenience.
2. The only issue raised in both the appeals is against the confirmation of disallowance of Employees Share of ESIC & PF deposited beyond the due date under the respective Acts but before the due date of filing return u/s.139(1) of the Act. In the intimations issued u/s.143(1), the AO made the above disallowances, which came to be affirmed in the first appeal. Aggrieved thereby, the assessee has approached the Tribunal.
We have heard the rival submissions and gone through the relevant material on record. The issue of making disallowance u/s.36(1)(va) in respect of Employees share of ESIC and PF deposited beyond the due date under the respective Acts but before the time limit for filing the return u/s.139(1) is no more res integra in view of the judgment of Hon’ble Supreme Court in Checkmate Services P. Ltd. & Ors. VS. CIT & Ors. (2022) 448 ITR 518 (SC) holding that the deduction u/s.36(1)(va) can be allowed only if the employees’ share in the relevant funds is deposited by the employer before the due date stipulated in respective Acts and further that the due date u/s.139(1) of the Act is alien for this purpose. The ld. AR was fair enough to accept the legal position against the assessee by virtue of Checkmate Services P. Ltd. (supra). In view of the above enunciation of law by the highest court of the land, the view taken by the ld. CIT(A) deserves to be countenanced. We order accordingly.
In the result, both the appeals are dismissed.
Order pronounced in the Open Court on 04th July, 2023.