DEIVEEGAM DYERS,SALEM V. ACIT, CIRCLE1, , HOSUR

ITA 1083/CHNY/2025

AI Insights

The case involves Deiveegam Dyers, the appellant, contesting disallowances made by the Assistant Commissioner of Income Tax under sections 36(1)(va) read with section 43B of the Income Tax Act, 1961, concerning ESI and EPF payments for the assessment year 2017-18. The appellant argued that the payments were made within the due dates as prescribed by the Supreme Court in the case of Checkmate Services Pvt Ltd. However, the Departmental Representative contended that the payments were made beyond the due dates. The Tribunal found that the payments were indeed made beyond the due dates and remitted the matter back to the ACIT for verification of the actual payment dates and to decide accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652628 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Other Referred Cases: Checkmate Services Pvt Ltd
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: SUDHARSHAN
• Section: 43B

Judgement Text

"आयकर अपीलीय अधिकरण, ’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1083/Chny/2025 Assessment Years: 2017-18 Deiveegam Dyers, No.1, Greenways Road, Fairlands, Salem, Tamil Nadu-636 016. [PAN: AAMFD2415J] Assistant Commissioner of Income Tax, Circle-1, Hosur. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.Sudharshan, Advocate for Mr.T.Vasudevan, Advocate. प्रत्यर्थी की ओर से /Revenue by : Ms.Anitha, Addl.CIT सुनवाई की तारीख/Date of Hearing : 17.06.2025 घोषणा की तारीख /Date of Pronouncement : 19.06.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / APL / S / 250 / 2024-25 / 1069531911(1) dated 08.10.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), for the assessment year 2017-18. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. 2.0 It has been noted that there is a delay of 107 days in the case, in filing of this appeal before the tribunal. In its affidavit the assesse has ITA No.1083/Chny/2025 Page - 2 - of 4 pleaded that the assesse could not file timely appeal on account of death in the family of its chartered accountant , whose father in law had passed away. Consequently, the C.A loss the track of timelines. All these activities contributed to the delay which was neither willful nor wanton. The assesse submitted that there will not be case of any non-compliance now. We have considered the justification put forth by the assesse and we are satisfied with their adequacy. We are also conscious of the fact that no litigant gains by intentionally delaying its own matters. The Ld. DR did not pose any serious objections to the delay. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. 3.0 The only issue emanating from the grounds of appeal raised by the appellant are regarding disallowances made by the Ld.AO u/s 36(1)(va) r.w.s 43B on account of ESI and EPF payment. It is the case of the assessee that payments were made within the due dates of the timelines prescribed in the decision of the Hon’ble Apex Court in the case of checkmate services pvt ltd. The Ld. Counsel accordingly argued that it is entitled for the reduction. 4.0 Per contra, the Ld.DR relied upon the order of lower authorities and contended that no allowance is required to be given to the assessee in compliance to the decision of the Hon’ble Apex Court in the case of checkmate services pvt ltd. It was submitted that assessee actually made payments beyond the due dates as per the respective Acts. ITA No.1083/Chny/2025 Page - 3 - of 4 5.0 We have heard rival submissions in the light of material available on records. We have noted from ground of appeal no.3 the following information given by the assessee. ESI Payments Due Date Payment date 4673 21.7.16 26.7.16 9557 21.2.17 22.2.17 Total 14230 EPF Payments 34217 15.7.16 26.7.16 43858 15.1.17 30.1.17 Total 78075 + 14230 = 92305 A perusal of the same indicate, prima face, that the payments were made by the assessee beyond the due dates and therefore assessee is hit by the decision in the case of checkmate services pvt ltd. supra. Be that as it may be we of the considered view that ends of justice would be met if the matter is remitted to the Ld.AO to verify the actual dates of payments and decide the matter accordingly. The Ld.AO shall therefore conduct a limited verification of the actual dates of payments qua ESI and EPF and conclude the matter in accordance with law with the decision in the case of checkmate services pvt ltd. supra Accordingly, all the grounds of appeal raised by the assessee are allowed for statistical purposes. ITA No.1083/Chny/2025 Page - 4 - of 4 6.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 19th , June-2025 at Chennai. Sd/- (मनु क ुमार धिरर) (MANU KUMAR GIRI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 19th , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "