Kalpajeet Basu Mallik, Kolkata V. DCIT, Cir-32(1), Kolkata. , Kolkata

ITA 1212/KOL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7446 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 27-03-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 13-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

ITA No. 1212/KOL/2023 (A.Y. 2020-2021) Kalpajeet Basu Mallik 1 THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Dr. Manish Borad, Accountant Member I.T.A. No. 1212/KOL/2023 Assessment Year: 2020-2021 Kalpajeet Basu Mallik,...............................Appellant 2C, F-201, Chakraberia Lane, Elgin Road, L.R. Sarani, Kolkata-700020 [PAN:AHBPM6983A] -Vs.- Deputy Commissioner of Income Tax,......Respondent Circle-32(1), Kolkata, 10B, Middleton Row, Kolkata-700071 Appearances by: Shri C. Roy, C.A., appeared on behalf of the assessee Shri Manas Mondal, Addl. CIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: April 29, 2024 Date of pronouncing the order: May 01, 2024 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. ADDL/JCIT(Appeals)-7, Delhi dated 31 st October, 2023 passed for A.Y. 2020-21. ITA No. 1212/KOL/2023 (A.Y. 2020-2021) Kalpajeet Basu Mallik 2 2. The solitary substantial grounds of appeal raised by the assessee is, that ld. CIT(Appeals) has erred in confirming the disallowance of Rs.84,66,849/-, which has been made by the ld. Assessing Officer while processing the return under section 143(1). The above amount represents P.F. & ESI contributions of the employees’, which according to the Revenue was not deposited within the due date provided under P.F. & E.S.I. Act. 3. The ld. Counsel for the assessee while impugning the orders of Revenue authorities contended that on 15 th May, 2020, Employees’ Provident Fund Organization had issued a Circular whereby it has been contemplated that if any default made by the employer for depositing the employees’ contributions meant for Lockdown period, then no action would be taken against such employer. We deem it appropriate to take note of this Circular, which reads as under:- ITA No. 1212/KOL/2023 (A.Y. 2020-2021) Kalpajeet Basu Mallik 3 4. On the strength of this Circular, ld. Counsel for the assessee submitted that a sum of Rs.18,13,655/- ought to have not been disallowed to the assessee. He further contended that one payment was due on 15 th August, 2019 but this was made on 16 th August, 2019. The sum paid to ESI Act on 16.08.2019 is of Rs.1,53,292/- . He submitted that since 15 th August was Gazetted Holiday, on first working day, the assessee has made the payment. Therefore, this payment ought not to be disallowed to the assessee. ITA No. 1212/KOL/2023 (A.Y. 2020-2021) Kalpajeet Basu Mallik 4 5. The ld. Counsel for the assessee further submitted that as far as the balance amount is concerned, that is covered by the judgment of Hon’ble Supreme Court in the case of Checkmate Services (P) Limited –vs.- CIT reported in 143 taxmann.com 178. 6. The ld. Sr. D.R., on the other hand, contended that the payments were made online and even on Gazetted Holiday, the assessee could easily make the payment. He further submitted that similar step could have been taken during lockdown period. 7. On due consideration of the above facts and circumstances, we are of the view that Employees’ Provident Fund Organization waived the condition in its Circular for mandatorily deposits of P.F. & ESI payments to the respective account during COVID period. Therefore, we find that the payments relatable to such period deserves to be excluded from the total amount disallowed by the ld. Assessing Officer. This discussion is not available in the assessment order passed under section 143(1). The ld. 1 s t Appellate Authority has not dealt this matter with this angle. Therefore, we deem it appropriate to relegate this issue to the file of ld. Assessing Officer for verification. The ld. Assessing Officer shall verify that if payments are relatable for Lockdown period, then, no disallowance of these payments is to be made as per the ITA No. 1212/KOL/2023 (A.Y. 2020-2021) Kalpajeet Basu Mallik 5 Circular issued by the Employees’ Provident Fund Organization dated 15 t h May, 2020. 8. As far as the second issue regarding ESI payment is concerned, we find that a payment of Rs.1,53,292/- was due on 15.08.2019. This payment was made on 16.08.2019. We are of the view that since last date of making the payment was a Gazetted Holiday, therefore, the first working day is to be construed as the last date of the payment. In other words, the payments due on 15 t h August are to be considered as if such payments are due on 16 t h August. The assessee has made the payment on 16.08.2019, therefore, we delete the disallowance of Rs.1,53,292/-. 9. In view of the above, the appeal of the assessee is partly allowed as indicated above. Order pronounced in the open Court on 01/05/2024. Sd/- Sd/- (Manish Borad) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 1 st day of May, 2024 Copies to :(1) Kalpajeet Basu Mallik, 2C, F-201, Chakraberia Lane, Elgin Road, L.R. Sarani, Kolkata-700020 ITA No. 1212/KOL/2023 (A.Y. 2020-2021) Kalpajeet Basu Mallik 6 (2) Deputy Commissioner of Income Tax, Circle-32(1), Kolkata, 10B, Middleton Row, Kolkata-700071 (3) ADDL/JCIT(A)-7, Delhi; (4) CIT- , Kolkata (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.