M/s NALLI CHINNASAMI CHETTY, CHENNAI V. ACIT , NON CORPORATE CIRCLE 7 (1), CHENNAI

ITA 1056/CHNY/2022

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The case involves M/s. Nalli Chinnasami Chetty, who appealed against the order of the Commissioner of Income Tax (Appeals), which confirmed the disallowance of \\u20b96,02,859 under section 36(1)(va) of the Income Tax Act, 1961 for belated remittance of PF & ESI. The assessee argued that the remittances were made on the due dates, citing difficulties due to the COVID-19 pandemic and nationwide lockdown. The Tribunal, after considering the submissions and the circumstances of the lockdown, decided to remit the matter back to the Assessing Officer for a detailed examination of the remittance dates and compliance with the relevant acts.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134967 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 22-01-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 06-12-2022
• Other Referred Cases: Checkmate Services Pvt. Ltd. v. CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 143(1)

Judgement Text

आयकर अपीलीय अिधकरण, ‘बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी वी. दुगाŊ राव, Ɋाियक सद˟ एवं ŵी मनोज कु मार अŤवाल, लेखा सद˟ के समƗ । Before Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. No.1056/Chny/2022 िनधाŊरण वषŊ/Assessment Year: 2020-21 M/s. Nalli Chinnasami Chetty, 9, Nageswaran Road, T. Nagar, Chennai 600 017. [PAN:AAAFN2314E] Vs. The Assistant Commissioner of Income Tax, Non Corporate Ward 7(1), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri K. Ramakrishnan, C.A. ŮȑथŎ की ओर से/Respondent by : Shri D. Hema Bhupal, JCIT सुनवाई की तारीख/ Date of hearing : 23.01.2023 घोषणा की तारीख /Date of Pronouncement : 31.01.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 14.10.2022 relevant to the assessment year 2020-21. 2. Brief facts of the case are that the assessee has filed his return of income on 04.01.2021 for the assessment year 2020-21 declaring I.T.A. No.1056/Chny/22 2 total income of ₹.1,21,24,080/-. The CPC processed the return and issued intimation under section 143(1) of the Income Tax Act, 1961 [“Act” in short] dated 02.11.2021 by assessing total income of the assessee at ₹.1,27,26,940/- after disallowing an amount of ₹.6,02,859/- under section 36(1)(va) of the Act towards belated remittance of PF & ESI. On appeal, by following the judgement of the Hon’ble Supreme Court in C.A, No. 283 of 2016 in the lead case of Checkmate Services Pvt. Ltd. v. CIT, the ld. CIT(A) (NFAC) dismissed the appeal filed by the assessee. 3. On being aggrieved, the ld. Counsel for the assessee has submitted that the due date for remittance of ESI deduction was 14.05.2020 and the assessee has remitted the ESI deduction on 15.05.2020. Further, the PF deduction was remitted on 18.05.2020. It was further submission that due to nation-wide lockdown towards Covid-19 pandemic, the Ministry of Home Affairs (MHA), Government of India ordered under the Disaster Management At, 2005 for the extension of lockdown 31.05.2020 and in view of the above order, shops and establishments were not functioning and with great difficulty, the PF deduction was remitted on 18.05.2020 and prayed for deleting the addition made towards belated remittance of PF & ESI. I.T.A. No.1056/Chny/22 3 4. On the other hand, the ld. DR fairly conceded that the matter may be remitted back to the Assessing Officer for verification and for fresh adjudication. 5. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below including the details of Form 3CB, Form 3CD, etc. furnished by the assessee. In this case, the CPC processed the return and disallowed an amount of ₹.6,02,859/- under section 36(1)(va) of the Act towards belated remittance of PF & ESI, which was confirmed by the ld. CIT(A) (NFAC). The contention of the assessee is that the ESI deduction was remitted on 14.05.2020, which was well within the due date of remittance on 15.05.2020. It was also contended that due to nation-wide lockdown towards Covid-19 pandemic, with great difficult, the assessee could remit the PF & ESI deduction. On perusal of the appellate order, under assessee’s submission, it was mentioned that the ESI deduction was remitted on 18.05.2020. Accordingly, we set aside the order of the ld. CIT(A) (NFAC) and remit the matter back to the file of the Assessing Officer to verify as to whether the amounts were remitted as provided under relevant PF & ESI Act and the same may be allowed by I.T.A. No.1056/Chny/22 4 affording an opportunity of being heard to the assessee. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31 st January, 2023 at Chennai. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 31.01.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ (अपील)/CIT(A), 4. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.