Payel Enterprise, Durgapur V. I.T.O., Ward-2(1), Asansol, Asansol

CO 24/KOL/2022

AI Insights

The case involves two appeals by the Income Tax Officer, Ward-2(1), Asansol against Payel Enterprise, challenging the orders of the Ld. CIT(A) which deleted the additions made by the Assessing Officer regarding employees' contributions towards PF & ESI. The additions were initially made due to the failure of the assessee to deposit these contributions within the due dates prescribed under the respective Acts. The assessee supported the CIT(A)'s decision in their cross-objections. The tribunal dismissed both the appeals and the cross-objections based on the monetary limit set by the CBDT for filing appeals.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127261 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 05-03-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 05-03-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 29-12-2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 143(1)

Judgement Text

आयकर अपील य अ धकरण, कोलकाता पीठ ‘‘ए’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA ी राजपाल यादव, उपा य (कोलकाता े ) एवं ी मनीष बोरड, लेखा सद य के सम [Before Shri Rajpal Yadav, Vice-President (KZ) & Dr. Manish Borad, Accountant Member] I.T.A. Nos. 597 & 598/Kol/2022 Assessment Years: 2018-19 & 2019-20 ITO, Ward-2(1), Asansol Vs. Payel Enterprise (PAN: AAKFP 2307 H) Appellant / (अपीलाथ#) Respondent / ($%यथ#) C.O. No. 24/Kol/2022 (Arising out of ITA No. 597/Kol/2022) C.O. No. 1/Kol/2023 (Arising out of ITA No. 598/Kol/2022) Assessment Years: 2018-19 & 2019-20 Payel Enterprise (PAN: AAKFP 2307 H) Vs. ITO, Ward-2(1), Asansol Cross-objector Respondent / ($%यथ#) Date of Hearing / स ु नवाई क( )त*थ 06.03.2023 Date of Pronouncement/ आदेश उ-घोषणा क( )त*थ 06.03.2023 For the Appellant/ )नधा12रती क( ओर से Shri Shuvo Chakraborty, Advocate For the Respondent/ राज व क( ओर से Shri Vijay Kumar, Addl. CIT 2 I.T.A. Nos. 597 & 598/Kol/2022 C.O.No. 24/Kol/2022 C.O. No.1/Kol/2023 Assessment Years: 2018-19 & 2019-20 Payel Enterprise ORDER / आदेश Per Bench: The present two appeals are directed at the instance of revenue against the separate order of Ld. CIT(A) dated 29.08.2022 passed in AY 2018-19 and 2019-20 respectively. 2. The revenue has taken solitary ground of appeal in both the years. The grievance of the revenue is that the Ld. CIT(A) has erred in deleting the addition of Rs. 42,15,230/- and Rs. 18,65,650/- in AY 2018-19 respectively. These additions have been made by the Ld. Assessing Officer by making a disallowance out of employees’ contribution towards PF & ESI for failure of the assessee to deposit such payment within due date provided under those Acts. The disallowances have been made in an assessment u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act). On receipt of the notice in the appeals of the revenue, the assessee has filed cross-objections in both the years. The assessee has supported the orders of the Ld. CIT(A) in its cross-objections. 3. With the assistance of Ld. Representative, we have gone through the records carefully, a perusal of the grounds of appeal would reveal that tax effect by virtue of relief given by the Ld. CIT(A) in both the years is Rs. 14,58,806/- and Rs. 6,51,932/-. This tax effect is less than Rs. 50 Lakhs i.e. the monetary limit for challenging the orders of Ld. CIT(A). It is pertinent to observe that CBDT has issued instruction bearing No. 17/2019 dated 08.08.2019. In this instruction it has laid down that if tax effect by virtue of relief given by the Ld. CIT(A) is less than Rs. 50 Lakhs, the Department will not file further appeal before the Tribunal. We are satisfied that tax effect is less than 50 Lakhs and therefore both the appeals are not maintainable. 4. Section 253(4) of the Act authorizes a respondent to file cross-objections in an appeal against any part of the impugned order. In other words, the cross-objector has to demonstrate his grievance against any part of the impugned order. The assessee in 3 I.T.A. Nos. 597 & 598/Kol/2022 C.O.No. 24/Kol/2022 C.O. No.1/Kol/2023 Assessment Years: 2018-19 & 2019-20 Payel Enterprise the cross-objections have taken support of the Ld. CIT(A)’s order rather pointing out any part which is against it. Therefore its cross-objections are not maintainable. Accordingly both the cross-objections are also dismissed. 5. In the result, both the appeals of the revenue and cross-objections of the assessee are dismissed. Order is pronounced in the open court on 6 th March, 2023 Sd/- Sd/- (Manish Borad/ मनीष बोरड) (Rajpal Yadav /राजपाल यादव) Accountant Member/लेखा सद य Vice-President / उपा य Dated: 6 th March, 2023 SB, Sr. PS Copy of the order forwarded to: 1. Appellant- ITO, Ward-2(1), Asansol 2. Respondent – Payel Enterprise, As-53, Srinagar Pally, 54, Feet Road, Benachity, Durgapur-713213. 3. Ld. CIT(A)-NFAC-Delhi 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata