ACIT, CIRCLE-1, ERODE V. .GOBI DHAMODHARAN SEKAR, ERODE

MA 160/CHNY/2022

AI Insights

The case involves a miscellaneous application by the revenue seeking recall/modification of a Tribunal order concerning the late payment of PF/ESI contributions by the assessee, Shri Gobi Dhamodharan Sekar. Initially, the Tribunal had allowed the assessee's appeal, but following a Supreme Court decision in Checkmate Services P. Ltd. Vs CIT, which favored the revenue's stance, the Tribunal modified its order. The Tribunal directed the Assessing Officer/CPC to re-compute the income of the assessee by disallowing the late payments.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472455 (ITAT-CHENNAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-12-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Other Referred Cases: Checkmate Services P. Ltd. Vs CIT (143 Taxmann.com 178; dated 12.10.2022), Electrical India (ITA No. 789/Chny/2022)
• Laws Referred To: Section 254(2), Section 143(1)
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE. UPON PERUSAL; R. RAGHUPATHY LD.
• Assessee Lawyers: DISALLOWING LATE
• Section: 143(1); 254(2)

Judgement Text

" आयकर अपीलीय अिधकरण ‘ए’ \u0010ा यपीठ चे\u0015ई म\u0018। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI मा ननीय +ी मनोज क ुमा र अ/वा ल ,लेखा सद4 एवं मा ननीय +ी मनु क ुमा र िग7र, \u0010ा ियक सद4 क े सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM M.A. No.160/Chny/2022 [In ITA No.384/Chny/2021] (िनधा 9रण वष9 / Assessment Year: 2019-20) ACIT Circle-1 Erode. बना म / Vs. Shri Gobi Dhamodharan Sekar No.9, Mill Road, Gobichettipalayam, Erode-638 476. \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No. AJCPS-0392-N (अपीलाथ\u001c/Appellant) : (\u001f थ\u001c / Respondent) अपीलाथ\u001c कीओरसे/ Appellant by : Shri R. Raghupathy (Addl.CIT) - Ld. Sr. DR \u001f थ\u001cकीओरसे/Respondent by : None सुनवाई की तारीख/Date of Hearing : 20-12-2024 घोषणा की तारीख /Date of Pronouncement : 20-12-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this miscellaneous application, the revenue seeks recall / modification of Tribunal order passed in ITA No.384/Chny/2021 on 23.02.2022. The Tribunal, vide common order, allowed bunch of assessee’s appeals, on the issue of late payment of PF / ESI. The revenue has preferred present misc. application against order passed in ITA No.384/Chny/2021. 2. At the time of hearing, none appeared for assessee. Upon perusal of order sheet entries, it could be seen that none is appearing for assessee since several occasions. Left with no option, we proceed to dispose-off this application. 3. Drawing attention to the application, Ld. Sr. DR submitted that the only issue in the appeal was disallowance of late payment of ESI / PF and this matter has now been settled by Hon’ble Apex Court in revenue’s favor in the case of Checkmate Services P. Ltd. Vs CIT (143 Taxmann.com 178; dated 12.10.2022) and therefore, the same may be followed. We also find that similar application has been allowed by us in our lead order passed in MA Nos.97/Chny/2022 & 11/Chny/2023 on 31.07.2023 wherein the applications of revenue has been allowed and the issue, on merits, has been decided against the assessee considering the decision of Hon’ble Supreme Court in the case of Checkmate Services P. Ltd. Vs CIT (143 Taxmann.com 178; dated 12.10.2022). 4. We find that the sole issue in the captioned appeal was disallowance of late payment of ESI/PF. The bench deleted the disallowance. However, considering the cited decision of Hon’ble Apex Court, the bench in MA Nos.97/Chny/2022 & 11/Chny/2023 on 31.07.2023 held that there was mistake apparent from record in terms of Section 254(2) and therefore, the Revenue’s applications were to be allowed. The issue, on merits was decided against the assessee. It was also held that such an adjustment could very well be made while processing return of income u/s 143(1) as per decision in Electrical India (ITA No. 789/Chny/2022). 5. Taking the same view, accepting the present application of the revenue, the captioned order stand modified and the impugned issue is decided against the assessee. Considering the same, Ld. AO / CPC is directed to re-compute the income of the assessee by disallowing late payment of Employees’ Contribution to PF / ESI which have been deposited beyond due date including grace period as specified in respective welfare ESI / PF Acts. The order of Tribunal stand modified accordingly. 6. The application of Revenue stand allowed. Order pronounced on 20th December, 2024. Sd/- (MANU KUMAR GIRI) \u0010ा ियक सद4 / JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद4 / ACCOUNTANT MEMBER चे2ई Chennai; िदनांक Dated : 20-12-2024 DS आदेश की Nितिलिप अ/ेिषत / Copy of the Order forwarded to : 1. अपीलाथ\u001c/Appellant 2. \u001f थ\u001c/Respondent 3. आयकरआयु;/CIT Coimbatore 4. िवभागीय\u001fितिनिध/DR 5. गाड@फाईल/GF "