BABIAN,LUCKNOW V. INCOME TAX OFFICER (1), LUCKNOW-NEW

ITA 167/LKW/2022

AI Insights

The case involves an appeal by the assessee against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, which pertained to the assessment year 2019-20. The primary issue in the appeal was the disallowance of Rs.1,92,422 towards employees' contribution to the Provident Fund, which was allegedly deposited late. The Assessing Officer had made this adjustment under section 143(1)(a) of the Income Tax Act, 1961. The assessee's appeal to the CIT(A) was dismissed due to non-prosecution. Subsequently, the assessee approached the Income Tax Appellate Tribunal, Lucknow, which led to the current outcome of the appeal being dismissed as withdrawn.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 313128 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUNIL KUMAR RAJWANSHI; ADDL
• Assessee Lawyers: DEVASHISH MEHROTRA
• Keywords: Retrospective amendment
• Section: 2; 43B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI NIKHIL CHOUDHARY, ACCOUNTANT MEMBER ITA No.167/LKW/2022 (Assessment Year: 2019-20) Babian B-155, Bhootnath Market, Indira Nagar, Lucknow-226016. v. Income Tax Officer (1) Lucknow New, Pratyaksh Kar Bhawan, 57, Ram Tirath Marg, Lucknow-226001. PAN:AACFB9247N (Appellant) (Respondent) Appellant by: Shri Devashish Mehrotra, CA Respondent by: Shri. Sunil Kumar Rajwanshi, Addl CIT(DR) Date of hearing: 23 04 2025 Date of pronouncement: 30 04 2025 O R D E R PER KUL BHARAT, VICE PRESIDENT.: This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 14.09.2022 pertaining to the assessment year 2019-20. The assessee has raised the following grounds of appeal: - “1. That the CIT(A) has failed to appreciate that the addition made by way of disallowance of employees contribution to Provident Fund under section 143(1)(a) is outside the scope of the provisions and, therefore, for this reason alone, the same deserves to be deleted. 2. That the Id. CIT(A) has erred in law and on facts and circumstances of the case in making the disallowance of Rs.1,92,422/- towards employees contribution to Provident Fund, which was deposited slightly late by the appellant. 3. That the Id. CIT(A) has not appreciated that during the relevant assessment year provisions of Section 43B were applicable for allowance of deduction, if the deposit of dues was made within the due date of filing of the return, the same was a fully allowable deduction. 4. That the Id. CIT(A) has misinterpreted the amendments made by the Finance Act, 2021 by adding the Explanation 2 in Section 36(1)(va) and Explanation 5 to Sec. 43B by treating the same to having retrospective effect which is contrary to the intent of the Legislature as explained in the Explanatory Memorandum to Finance Act, 2021. 5. That the order passed by the Ld. CIT(Appeal)-NFAC is without affording Proper opportunity to the appellant, and is bad in law. ITA No.167/LKW/2022 Page 2 of 3 6. That the appellant craves leave to add, alter, amend and withdraw any of the ground of appeal before or at any time during the course of hearing.” 2. The only effective ground in this appeal is against sustaining the addition made by the Assessing Officer in respect of the delay in deposit of EPF Contribution of the Employee. 3. The facts giving rise in the present appeal are that in this case the Assessing Officer made adjustment under section 143(1)(a) of the Income Tax Act, 1961 (“the Act”, for short) thereby making disallowance of the employees contribution towards provident fund being delay in deposit by the assessee. Aggrieved against this, the assessee preferred an appeal before the Ld. CIT(A) who dismissed the appeal of the assessee on account of non-prosecution of the appeal. Now, the assessee is in appeal before this Tribunal. 4. At the time of hearing, an application dated 22.04.2025 is placed on record, requesting withdrawal of the appeal on account of the assessee is being in process of settlement under Vivad se Vishwas Scheme, 2024. The Learned Departmental Representative submitted that the Revenue has no objection for withdrawal of the appeal. 5. In view of the submission made by the Ld. Authorized Representative under the instruction of the assessee, the appeal of the assessee is dismissed as withdrawn. 6. In the result, the appeal of the assessee is dismissed as withdrawn. Order pronounced in the open Court on 30/04/2025. Sd/- Sd/- [NIKHIL CHOUDHARY] [KUL BHARAT] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 30/04/2025 Vijay Pal Singh, (Sr. PS) ITA No.167/LKW/2022 Page 3 of 3 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR 5. Guard file By order //True Copy// Assistant Registrar "