GRINDWELLL NORTAN LTD, MUMBAI V. ADDITIONAL DIRECTOR OF INCOME TAX , CPC, BANGALORE, Bengaluru

ITA 1087/MUM/2022

AI Insights

Grindwell Norton Limited appealed against the order of the Commissioner of Income Tax (Appeals), which disallowed the employees' contributions to Provident Fund and ESI, and denied credits and refunds related to Dividend Distribution Tax. The tribunal dismissed the appeal, citing precedents from the Supreme Court and a Special Bench of the Tribunal, which supported the disallowance and denial of claims based on procedural and statutory compliance issues.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123662 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 25-06-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 12-05-2022
• Other Referred Cases: Checkmate Services Pvt. Ltd. vs CIT, DCIT vs Total Oil India Pvt. Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 244A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G”, MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA NO. 1087/MUM/2022 : A.Y : 2019-20 Grindwell Norton Limited C/o. Kalyaniwalla & Mistry LLP, Esplanade House, 29, Hazarimal Somani Marg, Fort, Mumbai. PAN : AAACG8725B (Appellant) Vs. Asst. Director of Income Tax (CPC), Bengaluru (Respondent) Appellant by : Shri Akram Khan Respondent by : Shri Paresh Deshpande Date of Hearing : 26/06/2023 Date of Pronouncement : 26/06/2023 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER : Assessee has filed this appeal challenging the order dated 21.03.2022 passed by learned Commissioner of Income Tax (Appeals) (NFAC), Delhi (in short ‘Ld. CIT(A)’) and it relates to Assessment Year 2019-20. The assessee is contesting the following issues in this appeal :- a) Disallowance of employees contribution to Provident Fund (ground nos. 1 to 5); b) Non-granting of credit of Dividend Distribution Tax (ground nos. 6 & 7); 2 ITA No. 1087/Mum/2022 Grindwell Norton Limited c) Non-granting of refund on account of excess payment of Dividend Distribution Tax (ground nos. 8 & 9); and, d) Non-granting of interest under Section 244A of the Income Tax Act, 1961 (ground no. 10) 2. At the time of hearing, assessee did not press ground nos. 6 & 7 relating to claim of credit of Dividend Distribution Tax paid by the assessee. Accordingly, the said grounds are dismissed as not pressed. 3. As regards disallowance of employees contribution to Provident Fund and ESI under Section 36(1)(va) of the Income Tax Act, 1961 (in short ‘the Act’), the contention of the assessee will no longer survive in view of the decision rendered by the Hon’ble Supreme Court of India in the case of Checkmate Services Pvt. Ltd. vs CIT (Civil Appeal No. 2833/2016) dated 12.10.2022, wherein it has been held that disallowance under Section 36(1)(va) of the Act will be attracted if employees contribution is not paid within the due dates prescribed in the respective Acts. Accordingly, we dismiss the grounds raised by the assessee on this issue. 4. With regard to the claim of refund on account of excess payment of Dividend Distribution Tax, the Ld. AR submitted that the same is decided against the assessee by the order of Special Bench of Tribunal in the case of DCIT vs Total Oil India Pvt. Ltd. (ITA No. 6997/Mum/2019) dated 20.04.2023. Accordingly, following the decision rendered by the Special Bench of the Tribunal in the above said case, we dismiss the grounds raised in this issue. 3 ITA No. 1087/Mum/2022 Grindwell Norton Limited 5. The grounds relating to claim of refund under Section 244A of the Act would also fail, since we have dismissed the grounds relating to refund of excess payment of Dividend Distribution Tax in the preceding paragraph. 6. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 26 th June, 2023. Sd/- Sd/- (RAHUL CHAUDHARY) JUDICIAL MEMBER (B.R. BASKARAN) ACCOUNTANT MEMBER Mumbai, Date : 26 th June, 2023 *SSL* Copy to : 1) The Applicant 2) The Respondent 3) The CIT concerned 4) The D.R, “G” Bench, Mumbai 5) Guard file By Order Dy./Asstt. Registrar I.T.A.T, Mumbai