DEEPAK POPTANI,AGRA V. J.A.O CIRCLE 1(1)(1), AGRA

MA 3/AGR/2024

AI Insights

The case involves a miscellaneous application under section 254(2) of the Income-tax Act, 1961, filed by Deepak Poptani against the Assessing Officer, Circle 1(1)(1), Agra. The application contested the disallowance of the employer's contribution towards the provident fund, which was initially confirmed by the Tribunal in a previous order. The Tribunal had disallowed the entire amount claimed as deduction towards employees' contribution to the Provident Fund, citing a Supreme Court decision. However, the assessee argued that the employer's contribution, which was paid within the due date of filing the return, should be allowable under section 43B of the Act. The Tribunal acknowledged the oversight in not considering the bifurcation of the contributions as presented in the written submissions and admitted the mistake as apparent from the record.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772354 (ITAT-AGRA)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2019-2020
• Other Referred Cases: Checkmate Services (P) Ltd. v. CIT (2022) 448 ITR 518 (SC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR
• Assessee Lawyers: NAVIN GARGH
• Section: 43B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER M.A. No. 03/Agr/2024 (in ITA No.42/Agr/2022) Assessment year : 2019-20 Deepak Poptani, 10 Kailash Vihar, Bye Pass Road, Agra. Vs. The Assessing Officer, Circle 1(1)(1), Agra. PAN : AAXPP0723 (Applicant) (Opposite Party) ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER: Assessee has moved this miscellaneous application u/s. 254(2) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), stating that disallowance of the employer’s contribution towards provident fund to the extent of Rs.58,720/-, being out of the purview of section 36(1)(va) of the Act, has been wrongly confirmed by the Tribunal vide order dated 14.02.2024 passed in ITA No. 42/Agr/2022 (A.Y. 2019-20). 2. Perused the records. Heard learned representative for the applicant assessee and learned DR for the revenue. Assessee by Sh. Navin Gargh, Advocate Department by Sh. Anil Kumar, Sr. DR. Date of hearing 18.07.2025 Date of pronouncement 27.08.2025 Printed from counselvise.com MA No. 03/Agr/2024 2 | P a g e 3. The core contention of the learned AR is that, while adjudicating ground No. 1 in the appeal, the Tribunal disallowed the entire amount of Rs.1,30,583/- claimed as deduction towards employees’ contribution to Provident Fund, treating the same as belated payment covered by the decision of the Hon’ble Supreme Court in the case of Checkmate Services (P) Ltd. v. CIT (2022) 448 ITR 518 (SC). However, the said amount of Rs.1,30,583/-, in fact, consisted of two components, i.e. (i) employees’ contribution of Rs.71,863/-and (ii) employer’s contribution of Rs.58,720/- including administrative charges of Rs.2,995/-. The same were duly bifurcated and disclosed in the written submissions dated 09.02.2024, filed before the Tribunal in the appeal proceedings. It was submitted that although no specific ground was raised in the original appeal regarding such bifurcation, the written submissions filed before the Tribunal clearly delineated the nature and components of the contributions. It is further contended that the employer's contribution of Rs.58,720/- was paid well within the due date of filing the return under section 139(1) of the Act and therefore was allowable as per the provisions of section 43B of the Act. The Tribunal, however, inadvertently considered the entire amount of Rs.1,30,000/- as employees’ contribution and applied the ratio of Checkmate Services Pvt. Ltd. (supra), thereby disallowing the full amount, which constitutes a mistake apparent from the record. Printed from counselvise.com MA No. 03/Agr/2024 3 | P a g e 4. Learned DR submitted that no such bifurcation was made in the ground No. 1 of appeal. He supported the impugned order. 5. It transpires from the written submissions filed before the Tribunal on 09.02.2024 that the assessee bifurcated the total amount of Rs.1,30,000/- between employees' and employer's contributions. The employer’s contribution of Rs.58,720/-, having been deposited before the due date of filing the return, is otherwise allowable under section 43B of the Act. It appears that while adjudicating the ground No. 1, the Tribunal seems to have lost sight of the bifurcation provided by the assessee in his written submissions dated 09.02.2024, and thereby treated the entire amount as employees’ contribution liable for disallowance as per judgment of the Hon’ble Supreme Court in Checkmate Services (supra). This constitutes a mistake apparent from the record, which resulted in disallowance of a legitimate claim of applicant assessee, otherwise allowable in law and supported by the facts already on record, as the written submissions giving factual bifurcation of the Rs.1,30,583/- (into employees’ and employer’s contributions) filed before the Tribunal form part of the appellate record. 5. In the result, miscellaneous application is allowed. The impugned order dated 14.02.2024 passed in ITA No. 47/Agr/2022, is partly recalled only to the extent of hearing on ground No. 1 relating to disallowance of PF contribution of Rs.58,720/- made towards employer’s contribution. The Printed from counselvise.com MA No. 03/Agr/2024 4 | P a g e appeal shall be accordingly fixed for hearing afresh for limited adjudication on the said issue. The Registry is directed to list the appeal for hearing in due course. Order pronounced in the open court on 27.08.2025. Sd/- Sd/- (BRAJESH KUMAR SINGH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 27.08.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra Printed from counselvise.com "