CONCEPT MOTORS (INDIA) PVT LTD,DELHI V. ASSESSING OFFICER, CIRCLE-4(2), DELHI

ITA 373/DEL/2025

AI Insights

The case involves Concept Motors (India) Pvt. Ltd., which appealed against the order of the National Faceless Appeal Centre (NFAC) disallowing a deduction of Rs. 49,03,711 for belated payment of employees' contributions to EPF/ESIC for the Assessment Year 2018-19. The appeal was heard by the Income Tax Appellate Tribunal Delhi Bench, which decided the case ex parte due to the absence of the assessee's representative. The Tribunal considered the precedents set by the Supreme Court and the Bombay High Court, which clarified that the compliance with section 36(1)(va) of the Income Tax Act should be according to the due date of the corresponding statute, not the due date under section 139(1) of the Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775903 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 22-01-2025
• Other Referred Cases: Checkmate Services Pvt. Ltd. v. CIT [2022] 448 ITR 518/ [2022]143 taxmann.com 178 (SC), Rohan Korgaonkar v. DCIT [2024] 159 taxmann.com 321
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

"1 ITA No. 373/Del/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE Ms. MADHUMITA ROY, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 373/DEL/2025 Assessment Year: 2018-19 Concept Motors (India) Pvt. Ltd., A-406, Somdutt Chambers 1, 5 Bhikaji Cama Place, New Delhi-110066. PAN: AACCC 0613 J Vs Assessing Officer, Circle 4(2), New Delhi. APPELLANT RESPONDENT Assessee represented by None Department represented by Shri Rajesh Kumar Dhanesta, Sr. DR Date of hearing 08.09.2025 Date of pronouncement 09.09.2025 O R D E R PER Ms. MADHUMITA ROY, JM: The instant appeal, preferred by the assessee, is directed against the order dated 26.11.2024 [DIN & Order No. ITBA/NFAC/S/250/2024-25/1070636078(1) passed by the National Faceless Appeal Centre (NFAC), Delhi in proceedings Printed from counselvise.com 2 ITA No. 373/Del/2025 under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for the Assessment Year 2018-19. 2. None appeared on behalf of the assessee at the time of hearing. We, thus, proceed to dispose of the appeal, ex parte, qua the assessee. We have heard the learned DR and perused the material available on record. 3. It emerges from the perusal of the assessment order as well as the CIT(A)/NFAC that both the lower authorities have disallowed Rs. 49,03,711/- representing belated payment of employees’ contribution towards EPF/ESIC in intimation u/s 143(1) as well as in assessment passed u/s 143(3) dated 23.11.2020, as upheld by the Learned CIT(A)’s in impugned order 26.11.2024. 4. After hearing the learned DR and going through the material available on record we find no merit in the assessee’s instant ground in light of the landmark decision of Hon’ble Supreme Court in Checkmate Services Pvt. Ltd. v. CIT [2022] 448 ITR 518/ [2022]143 taxmann.com 178 (SC), wherein their lordships have settled the law that the compliance to section 36(1)(va) ought to be as per the “due” date of the corresponding statute than that of u/s 139(1) of the Act. The Hon’ble Bombay High Court in Rohan Korgaonkar v. DCIT reported in [2024] 159 taxmann.com 321 has held that such disallowance could indeed be made even in Section 143(1) “processing” as well. We, thus reject assessee’s corresponding Printed from counselvise.com 3 ITA No. 373/Del/2025 substantive grounds in very terms and direct the Learned Assessing Officer to compute the assessee’s taxable income as per law after affording reasonable opportunity of being heard. 5. Assessee’s appeal in ITA No. 373/Del/2025 is partly allowed for statistical purposes. Order pronounced in open court on 09.09.2025. Sd/- Sd/- (NAVEEN CHANDRA) (MS. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 09.09.2025. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "