M/s DATA PATTERNS INDIA LTD , CHENNAI V. ADIT , CPC , BANGALORE

ITA 1115/CHNY/2022

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The case involves M/s. Data Patterns India Ltd., a private limited company engaged in the design, development, and manufacture of testing equipment for defense and government sectors. The company filed its income tax return for the assessment year 2019-20, which was processed and resulted in a higher assessed income due to disallowances related to employees' contributions to PF and ESI, and a deduction under section 80JJAA. The company appealed these disallowances to the CIT(A), which were upheld, leading to the current appeal before the Income Tax Appellate Tribunal. The Tribunal's decision was influenced by a Supreme Court ruling that disallowed deductions for belated payments of employees' contributions to PF and ESI.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135031 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 14-06-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 27-12-2022
• Other Referred Cases: Checkmate Service Pvt Ltd vs CIT [2022] 143 Taxmann.com 178 (SC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B

Judgement Text

आयकर अपीलीय अिधकरण, ‘बी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ᮰ी वी दुगाᭅ राव, ᭠याियक सद᭭य एवं ᮰ी मंजुनाथ. जी, लेखा सद᭭य के समᭃ BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 1115/Chny/2022 िनधाᭅरण वषᭅ / Assessment Year: 2019-20 M/s. Data Patterns India Ltd., H-9, Block -2, Ground Floor, SIPCOT IT Park, 4 th Main Road, Kelambakkam, Chennai – 600 32. [PAN: AAACD-2760-M] v. Assistant Director of Income tax, CPC, Income Tax Department, Bengaluru – 560 500. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : None ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. D. Hema Bhupal, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 15.06.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 28.06.2023 आदेश /O R D E R PER MANJUNATHA. G, ACCOUNTANT MEMBER: This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), New Delhi, dated 29.10.2022 and pertains to assessment year 2019-20. 2. The brief facts of the case are that, the appellant is a private limited company and engaged in the business of :-2-: ITA. No: 1115/Chny/2022 design, development and manufacture of on board testing equipments for the Defence, Space Department and Government controlled companies. The assessee had filed its return of income for the assessment year 2019-20 on 27.01.2020, admitting total income of Rs. 7,51,49,470/-. The return of income filed by the assessee has been processed u/s. 143(1) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) and determined total income of Rs. 8,87,32,230/-, by making additions towards disallowance of employees contribution to PF and ESI amounting to Rs. 9,78,885/- u/s. 36(1)(va) of the Act and also disallowance of deduction u/s. 80JJAA of the Act for Rs. 66,42,971/-. The assessee carried the matter in appeal before the CIT(A), but could not succeed. The ld. CIT(A), for the reasons stated in their appellate order dated 29.10.2022, dismissed appeal filed by the assessee and sustained additions made by the Assessing Officer towards disallowance of employees contribution to PF & ESI u/s. 36(1)(va) of the Act. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 3. None appeared for the assessee. We have heard the ld. DR and perused relevant materials on record. We find that the :-3-: ITA. No: 1115/Chny/2022 issue involved in present appeal with regard to the disallowance of employees contribution to PF & ESI u/s. 36(1)(va) r.w.s. 43B of the Act is covered against the assessee by the decision of the Hon’ble Supreme Court in the case of Checkmate Service Pvt Ltd vs CIT [2022] 143 Taxmann.com 178 (SC), where it has been held that belated payment of employees contribution to PF & ESI cannot be allowed as deduction u/s. 36(1)(va) r.w.s. 43B of the Act. Therefore, by following the decision of Hon’ble Supreme Court in the case of Checkmate Service Pvt Ltd vs CIT (Supra), we are inclined to uphold the findings of the Ld. CIT(A) and dismiss appeal filed by the assessee. 4. In the result, appeal filed by the assessee is dismissed. Order pronounced in the court on 28 th June, 2023 at Chennai. Sd/- (वी दुगाᭅ राव) (V. DURGA RAO) ᭠याियकसद᭭य/Judicial Member Sd/- (मंजुनाथ. जी) (MANJUNATHA. G) लेखासद᭭य/Accountant Member चे᳖ई/Chennai, ᳰदनांक/Dated: 28 th June, 2023 JPV आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ/CIT 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF