ORM ENGINEERING P.LTD,FARIDABAD vs. ACIT, CIRCLE-2(1), FARIDABAD

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ITA 2285/DEL/2022Status: DisposedITAT Delhi27 April 2023AY 2019-205 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 additions made by the authorities below were correct. Following the Supreme Court's decision in Checkmate Services Pvt. Ltd., employee contributions paid after the statutory due date must be added back to the assessee's income.

What were the facts?

The appeals concerned the addition of employee contributions to PF and ESI made after the statutory due date but before the return filing due date. The assessees argued that these additions were made incorrectly under section 143(1).

What were the issues?

Whether employee PF and ESI contributions paid after the statutory due date but before the return filing due date are deductible. Whether an order under section 143(1) can be passed on a debatable issue.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 139(1)

AI-generated summary — verify with the full judgment below

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

For Appellant: Shri Sourbh Sharma, Advocate
For Respondent: Shri B.M. Singh, Sr. DR
Hearing: 26.04.2023

the issue is common, these appeals are disposed off by this common order.

2.

We note that the short issue in this case is whether authorities below are correct in making the addition under section 143 (1) of the Income-tax Act, 1961 (for short 'the Act') on account of PF & ESI contribution 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.

3.

We find that the issue on merits is covered against the assessees 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 orders of the ld. CIT (A). Accordingly, we uphold the same.

4.

In assessee has also raised an additional ground which reads as under :- “The Ld. AO erred in law in passing the order u/s 143 (1) in a template text format without any cogent and specific reason on debatable and controversial issue which was clearly beyond the scope of sec.143 (1).”

5.

Upon careful consideration, we are of the opinion that the additional ground is also liable to be dismissed on the touchstone of aforesaid order of Hon’ble Supreme Court. After the authoritative pronouncement by the Hon’ble Supreme Court, this issue no more remains debatable. Hence, the additional ground is also dismissed.

6.

In the result, all the aforesaid appeals filed by assessees stand dismissed. Order pronounced in the open court on this 27th day of April, 2023.

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