Manubhai and Shah LLP, Ahmedabad V. The Deputy Commissioner of Income Tax, Circle- 4(1)(1), Ahmedabad

ITA 104/AHD/2023

AI Insights

The case involves Manubhai & Shah LLP appealing against the order of the National Faceless Appeal Centre (NFAC), which arose from an earlier order by the CPC, Bangalore. The dispute centered on the disallowance of Rs.17,68,253/- related to late contributions to the employees' Provident Fund (PF) and Employees' State Insurance (ESI). The Assessing Officer (AO) had disallowed the entire amount, which included Rs.7,51,813/- from employees and Rs.10,16,440/- from employers. The Tribunal found that the employers' contribution was made within the due date and thus should not have been disallowed.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125404 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 29-05-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 19-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Section: 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./I. T. A. No . 104/Ahd/20 23 ( नधा रण वष / A ss es sment Year : 2018-19) Ma nu bh ai & S ha h L L P G -4 , C a p s to ne , O p p . C h ir a g Mo to r H o us e, Sh et h Ma ng a ld a s R oa d, Ell is br id ge , A h me d a ba d – 38 00 0 6, G uj a r a t बनाम/ Vs . De pu t y Co m mi s s i on e r o f I n c o m e T ax C ir c l e 4 ( 1 ) ( 1 ) , A h m e da b ad थायी लेखा सं./जीआइआर सं./P A N / G I R N o . : A A FFM 2 0 8 6 H (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Ms. Arti N Shah, AR यथ क ओर से/Respondent by : Shri Atul Pandey, Sr. D.R. स ु नवाई क तार ख / D a t e o f H e a r i ng 30/05/2023 घोषणा क तार ख /D a t e o f P ro n o u nc e me n t 31/05/2023 O R D E R PER Ms. MADHUMITA ROY - JM: The instant appeal filed by the assessee is directed against the order dated 22.12.2022 passed by the National Faceless Appeal Centre (NFAC), Delhi arising out of the order dated 27.02.2019 passed by the CPC, Bangalore ITA No. 104/Ahd/2023 (Manubhai and Shah LLP vs. DCIT) A.Y.– 2018-19 - 2 - under section 143(1) of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2018-19. 2. We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record. 3. The brief facts leading to the case is this that the Ld. AO disallowed Rs.17,68,253/- of late contribution of employees Provident Fund. In fact, such amount includes contribution of employees of Rs.7,51,813/- and Rs.10,16,440/- of the employer. The case of the assessee is this that the employer’s contribution since made before the due date of filing of return cannot be disallowed. In support of the same, the representative of assessee has drawn our attention to the details annexed by the assessee appearing at Page Nos. 38 to 46 of the paper book filed before us. On the other hand, as the tax auditor has mentioned total contribution towards Provident Fund & ESI including employers’ contribution, the CPC has disallowed the total contribution towards PF & ESI, which were deposited late, beyond due date as contended by the Ld. DR. However, he has failed to controvert the factual aspect of the matter to this effect that the employers’ contribution has been paid before the due date of filing of return and the legal aspect to this effect that the employees’ contribution of Rs.7,51,813/- since not paid within due date, the same can only be disallowed instead of total consideration of Rs.17,68,253/-. 4. Having heard the Ld. Counsel appearing for the parties and having regard to the facts and circumstances of the case, we find that disallowance of ITA No. 104/Ahd/2023 (Manubhai and Shah LLP vs. DCIT) A.Y.– 2018-19 - 3 - Rs.10,16,440/- towards employers’ contribution is not justifiable as the same has deposited before the due date of filing of return and disallowance can be restricted only to the employees’ contribution. Thus, we find it fit and proper to direct the Ld. AO to restrict the disallowance to the employees’ contribution upon verification of the details to be submitted by the assessee before him in accordance with the observation made hereinabove. 5. In the result, assessee’s appeal is allowed for statistical purposes. This Order pronounced on 31/05/2023 Sd/- Sd/- (ANNAPURNA GUPTA) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 31/05/2023 True Copy S. K. SINHA आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं%धत आयकर आय ु 'त / Concerned CIT 4. आयकर आय ु 'त(अपील) / The CIT(A)- 5. *वभागीय -त-न%ध, आयकर अपील य अ%धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड3 फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील$य अ%धकरण, अहमदाबाद / ITAT, Ahmedabad