GAJANAND AGARWAL,HYDERABAD V. ITO., WARD-11(1), HYDERABAD

ITA 671/HYD/2024

AI Insights

The case involves an appeal by Shri Gajanand Agarwal against the order of the CIT (A), which confirmed the addition of Rs.4,87,268 to his income for the assessment year 2020-21. This amount represented the employee's contributions to PF and ESI, which were not deposited by the statutory due dates as required by the respective Acts. The main legal issue was whether the CIT (A) was justified in confirming the addition made by the CPC on account of these belated payments. The Tribunal referenced the Supreme Court's decision in Checkmate Services (P) Ltd vs. CIT, which established that such contributions, if not deposited by the statutory due dates, cannot be allowed as deductions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473231 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 19-11-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 12-07-2024
• Other Referred Cases: Checkmate Services (P) Ltd vs. CIT
• Laws Referred To: PF & ESI Acts, Section 139(1) of the Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: A SRINIVAS
• Section: 139(1)

Judgement Text

" ITA No 671 of 2024 Gajanand Agarwal Page 1 of 3 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ B ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member आ.अपी.सं /ITA No.671/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2020-21) Shri Gajanand Agarwal Hyderabad PAN:AAMPA7032N Vs. Income Tax Officer Ward 11(1) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri A Srinivas, CA राज̾ व Ȫारा/Revenue by:: Smt. Helen Ruby Jesindha, DR सुनवाई की तारीख/Date of hearing: 19/11/2024 घोषणा की तारीख/Pronouncement: 21/11/2024 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal by the assessee is directed against the order dated, 06/06/2024 of the learned CIT (A)/Addl/JCIT(A)-2 NFAC Guwahati, relating to A.Y.2020-21. 2. The assessee has raised the following grounds: “1. The order of the Appellate Commissioner is contrary to law, facts and circumstances of the case. ITA No 671 of 2024 Gajanand Agarwal Page 2 of 3 2. The Appellate Commissioner is erred in confirming the addition of Rs.4,87,268/- being PF/ESI dues paid before the due date of filing. 3. Any other grounds which the assessee may urge either before or at the time of the hearing”. 3. The solitary issue arises in this appeal is whether in the facts and circumstances of the case, the learned CIT (A) is justified in confirming the addition/adjustments made by the CPC on account of belated payments of employee’s contribution towards PF and ESI. 4. We have heard the learned AR and the learned DR and carefully perused the impugned order of the learned CIT (A). The learned AR has not disputed the fact that the payment of Rs.4,87,268/- has been made by the assessee after the due date as per the respective PF & ESI Acts. At the outset, we note that this issue is covered by the judgment of the Hon'ble Supreme Court in the case of Checkmate Services (P) Ltd vs. CIT reported in 1423 Taxman.com 178 (S.C), wherein the Hon'ble Supreme Court has held that, if the Employees’ contribution to PF & ESI are not deposited before the statutory due dates mentioned in the respective Acts, the same cannot be allowed as a deduction. Since admittedly, the assessee, in the instant case, has not deposited the Employees’ Contribution to PF & ESI before the statutory due dates, but has deposited the same before the due date prescribed u/s 139(1) for filing of the return of income, therefore, we do not find any error or irregularity in the impugned order of the learned ITA No 671 of 2024 Gajanand Agarwal Page 3 of 3 CIT (A). The grounds raised by the assessee are accordingly dismissed. 5. In the result, appeal filed by the assessee is dismissed. Order pronounced in the Open Court on 21st November, 2024. Sd/- Sd/- (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 21st November, 2024 Vinodan/sps Copy to: S.No Addresses 1 Shri Gajanand Agarwal, A-46, IDA Kukatpally, Hyderabad Ranga Reddy 500037 2 Income Tax Officer Ward 11(1) Signature Towers, Kondapur, Hyderabad 500081 3 Pr. CIT – Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "