ARON AVIATION SERVICES PVT. LTD.,NEW DELHI V. DCIT CIRCLE 31(1), NEW DELHI

ITA 996/DEL/2024

AI Insights

Aron Aviation Services Pvt Ltd appealed against the order of the CIT(A) which had added back Rs. 7,53,68,295, the amount contributed by employees towards ESIC and EPF, to the income of the assessee for the assessment year 2021-22. The addition was made as the contributions were paid after the due dates prescribed under the respective Acts. The CIT(A) upheld the action of the Assessing Officer, referencing the decision of the Hon'ble Apex Court in Checkmate Services Pvt. Ltd. vs. CIT. The Tribunal, after hearing the Senior DR and perusing the records, dismissed the appeal, agreeing with the CIT(A)'s reliance on the Supreme Court's decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46984 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2021-2022
• Other Referred Cases: Checkmate Services Pvt. Ltd. vs. CIT (Civil Appeal No. 2833 of 2016) [2022] 448 ITR 518 (SC) (FB), ITA No. 1635/Del/2021, ITA No. 2376/Mum2021, ITA No. 1785/Mum/2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHISH TRIPATHI
• Section: 143(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”, NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER, AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA NO. 996/Del/2024 A.YR. : 2021-22 ARON AVIATION SERVICES PVT LTD., A-113, ROAD NO. 2, MAHIPALPUR EXTN., NEW DELHI – 37 (PAN: AAFCA1395Q) VS. DCIT, CIRCLE 31(1), NEW DELHI (APPELLANT) (RESPONDENT) Appellant by : None Respondent by : Shri Ashish Tripathi, Sr. DR Date of hearing : 07.04.2025 Date of pronouncement : 09.04.2025 ORDER PER SHAMIM YAHYA, AM : The Assessee has filed the instant Appeal against the Order of the Ld. Addl/JCIT(Appeal)-1, Noida dated 03.01.2024, relating to assessment year 2021-22 on the following grounds:- 1. That in the present case, employees’ contribution Rs. 7,53,68,295/- towards ESIC and EPF was paid after due dates prescribed under the respective Acts of ESIC and PEF. In the impugned order u/s. 143(1) of the Act the said amount of Rs. 7,53,68,295/- has been added back in the income 2 | P a g e declared in the return of income filed for the present period without any prior intimation in terms of first proviso with section 143(1)(a) of the Act to the appellant assessee to establish its claim. 2. That the issue involved in the present case being debatable / controversial and having conflicting judicial opinion s as on 4.2.2022 the day return of income for the present period was originally filed and on 14.6.2022 the day return was revised, no addition on such issue could be made u/s. 143(1) of the Act in the returned income. 3. That the impugned orders in the present case passed by authorities below are in teeth of the judgement of the ITAT, Delhi dated 25.11.2022 ITA No. 1635/Del/2021 and of the ITAT Bombay dated 7.12.2022 ITA No. 2376/Mum2021 and dated 27.4.2022 ITA No. 1785/Mum/2021. 2. Brief facts of the case are that in this case, the employees’ contribution Rs. 7,53,68,295/- towards ESIC & EPF was paid after due dates prescribed under the respective Acts of ESIC & EPF and vide intimation u/s. 143(1) of the Act, the said amount has been added back to the income of the assessee. Against the aforesaid, Assessee preferred before the Ld. CIT(A who vide his impugned order dated 03.01.2024 elaborately discussed the issue in dispute and by relying upon the decision of the Hon’ble Apex Court in the case of Checkmate Services Pvt. Ltd. vs. CIT (Civil Appeal No. 2833 of 2016) [2022] 448 ITR 518 (SC) (FB) dismissed the appeal of the assessee by upholding the action of the AO. Aggrieved with the order of the Ld. CIT(A), assessee is in appeal before us. 3 | P a g e 3. None appeared on behalf of the assessee, despite issue of notice of hearing, hence, we are proceeding exparte qua the assessee, upon hearing the Ld. DR and perusing the records. 4. At the threshold, Ld. DR submitted that the issue involved in this appeal is no longer res integra and has been decided in favour of the Revenue by the decision of the Hon’ble Apex Court in the case of Checkmate Services Pvt. Ltd. vs. CIT-I., (Supra), hence, ld. CIT(A) has rightly dismissed the appeal of the assessee by relying upon the aforesaid decision of the Hon’ble Apex Court, which do not require any interference on our part. 5. We have heard the Ld. DR and perused the records, we find that Hon’ble Apex Court in the case of Checkmate Services Pvt. Ltd. (Supra) has held that payment towards employee’s contribution to ESIC/PF after the due date prescribed under the relevant statutes is not allowable deduction. Hence, Ld. CIT(A) has taken a correct decision of dismissal of appeal of the assessee, by relying upon the aforesaid precedent of the Hon’ble Apex Court, therefore, we uphold the order of the Ld. CIT(A) and reject the grounds raised in the instant appeal, by dismissing the captioned appeal of the assessee. 6. In the result, the Assessee’s appeal is dismissed. Order pronounced on 09/04/2025. Sd/- (SUDHIR PAREEK) Sd/- (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER SRBHATNAGAR Copy forwarded to:- 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT Assistant Registrar "