Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI “SMC” BENCH: NEW DELHI
Before: SHRI KUL BHARAT
ORDER
PER KUL BHARAT, JM :
The present appeal filed by the assessee is directed against the order passed by Ld.CIT(A), National faceless Appeal Centre (“NFAC”) dated 26.04.2023 for the assessment year 2020-21.
The assessee has raised following grounds of appeal:-
1. “That on the facts and circumstances of the case, the impugned order dated 26.04.2023 passed by the Ld.CIT(A), is bad, illegal and contrary to the provisions of the I.T.Act, 1961.
2. That on the facts and circumstances of the case ldCIT(A), AO (CPC) while passing the impugned order Ld.AO and CIT(A) both have faield to appreciate that Rs.2,43,311/- was deposited with the relevant authority with in the time stipulated under PF/ESI Act.”
3. Ld. Counsel for the assessee contended that the issue involved in this appeal is related to late deposit of contribution towards PF & ESI made by the employees. He submitted that the lower authorities have disallowed even such contributions that were deposited during the limitation prescribed under relevant Acts. Hence, the Assessing Officer (“AO”) should have allowed such deposits.
On the other hand, Ld. Sr. DR opposed these submissions and supported the orders of the authorities below. He fairly conceded that matter may be restored to the AO for verification of correctness of the claim of the assessee regarding such deposits that were made within time as prescribed under relevant law.
I have heard Ld. Authorized Representatives of the parties and perused the material available on record. Looking to the facts of the present case and the specific averment made at bar that certain deposits were made during the limitation period. Hence, looking to the totality of the facts, I hereby set aside the impugned order and restore the issue to the Assessing Authority to verify the correctness of the claim of the assessee and decide it afresh in accordance with law. If the AO finds that the employee’s contribution towards PF & ESI was deposited within period prescribed under the relevant Act, the AO would allow the claim of the assessee. Hence, the grounds raised by the assessee are allowed for statistical purposes in terms indicated herein above.
In the result, the appeal of the assessee is allowed for statistical purposes.