SURYA FASHIONCRAFTS PVT LTD,NEW DELHI vs. DCIT CPCQ, NEW DELHI

PDF · subscribers
ITA 1625/DEL/2020Status: DisposedITAT Delhi26 April 2023AY 2017-183 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the employee contributions to PF & ESIC, if paid after the statutory due dates, are to be added back to the assessee's income. This decision followed the precedent set by the Supreme Court in the Checkmate Services Pvt. Ltd. case.

What were the facts?

The assessee paid employee contributions to PF & ESIC after the statutory due dates but before the income tax return filing due date. The AO and CIT(A) confirmed the addition of these amounts to the assessee's income.

What were the issues?

Whether employee contributions to PF & ESIC paid after the statutory due dates but before the due date of filing the return under Section 139(1) are allowable as a deduction.

Which sections of the Income-tax Act were involved?

Section 139(1),Section 43B

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DELHI BENCH ‘G’ : NEW DELHI

For Respondent: Ms. Kajal Singh, Sr. DR
Hearing: 19.04.2023

PER SHAMIM YAHYA, ACCOUNTANT MEMBER :

1.

This appeal by the assessee is directed against the order of ld. CIT (Appeals)-8, Delhi dated 30.07.2020 pertaining to AY 2017-18. 2. The assessee has raised the following various grounds of appeal:- “

1. On the facts and circumstances of the case, the order passed by the learned CIT (A) is bad, both in the eye of law and on the facts.

2. On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in confirming addition made by AO of Rs. 3,90,495.00 without considering the fact that amount of PF & ESIC has been paid on or before the due date of income tax return filling specified under section 139(1) & as per section 438 of Income Tax Act 1961 and deduction of same is allowed.

./2020 3. On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in confirming addition made by AO of Rs. 3,90,495.00 without considering the Judgements of Honorable Supreme court and Honorable Jurisdictional High courts and various other High courts and Tribunal's.

4. On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in confirming addition of Rs.3,90,495.00 since the issue of addition is not incorrect claim apparent from the return/record & issue is debatable.”

3.

We note that the short issue in this case is whether authorities below are correct in making the addition of Rs.4,01,199/- under section 143 (1) of the Income-tax Act, 1961 (for short 'the Act') on account of PF & ESIC by the employees paid beyond the time specified in the respective statute but before the due date of filing of return u/s 139 (1) of the Act.

4.

We find that the issue on merits is covered against the assessee by the decision of Hon’ble Apex Court in the case of Checkmate Services Pvt. Ltd. (2022) 143 taxmann.com 178 wherein it has been held that if employee contribution of provident fund and ESI paid beyond due date as specified under the relevant Act then the same has to be added back in the income of the assessee. Respectfully following the precedent, we do not find any infirmity in the order of the ld. CIT (A). Accordingly, we uphold the same.

5.

In the result, assessee’s appeal stands dismissed. Order pronounced in the open court on this 26th day of April, 2023.

More judgments on Section 139(1)

All 8,117 judgments and leading authorities on Section 139(1) →

Recent GST High Court judgments

Search GST case law →