Grihalaxmi Metal Industries, Belgaum V. DCIT, CPC, Bengaluru

ITA 13/PAN/2022

AI Insights

The case involves Grihalaxmi Metal Industries appealing against the decision of the National Faceless Appeal Centre (NFAC), which upheld the disallowance of Rs.12,57,305 representing employees' contributions to PF and ESI. The disallowance was initially made by the DCIT (CPC) under section 143(1) of the Income Tax Act, 1961, due to the contributions not being deposited by the 'due date' as required under the relevant statutes. The Tribunal referenced the Supreme Court's decision in Checkmate Services P. Ltd. vs. CIT & Ors., which supported the disallowance under the amended sections 36 and 43B of the Act, deemed clarificatory in nature by the Finance Act, 2021.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136828 (ITAT-PANAJI)
• Duration Of Justice: 1 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2023
• Appeal Filed By: Assessee
• Order Result: DismissedDismissed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 06-04-2022
• Other Referred Cases: Checkmate Services P. Ltd., vs. CIT & Ors. [2022] 448 ITR 518 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH : PANAJI (THROUGH VIRTUAL HEARING) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI G.D. PADMAHSHALI, ACCOUNTANT MEMBER ITA.No.13/PAN./2022 Assessment Year 2018-2019 Grihalaxmi Metal Industries, N-13, KSSIDC Industrial Estate, udyambag, Belgaum, Karnataka – 590 008 PAN AAGFG0072N vs. The DCIT (CPC), Post Box No.1, Electronic City Post Office, Bengaluru – 560 100. Karnataka. (Appellant) (Respondent) For Assessee : Shri Pramod Y Vaidya For Revenue : Shri N. Shrikanth Date of Hearing : 07.08.2023 Date of Pronouncement : 08.08.2023 ORDER PER SATBEER SINGH GODARA, J.M. : This assessee’s appeal arise against the National Faceless Appeal Centre [in short “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/2021-22/1037551793(1), dated 07.12.2021, involving proceedings u/s. 143(1) of the Income Tax Act, 1961 (in short “the Act”). Heard both the parties. Case file perused. 2. The assessee pleads the following substantive grounds in the instant appeal : 1. “On the facts and circumstances of the case and in law the learned CIT(Appeals) .National Faceless Appeal Centre erred in 2 ITA.No.13/PAN./2022 confirming the disallowance of PF and ESI contribution of Rs.12,57,305/- u/s 36(1)(va) r.w.s 43B made by DCIT(CPC) in order dated 22.08.2019 passed under section 143(1) of Income Tax Act 1961. 2. The learned CIT(A) erred in not appreciating that the appellant had discharged the entire liability well before the due date of filing the return of income u/sec.139(1). 3. The learned CIT(A) erred in not following the binding jurisdictional Karnataka High Court decisions in favour of the appellant on the issue in the present appeal. 4. The CIT(A) erred in holding that, “in view of the amendments made by the Finance Act,2021 in section 36 and section 43B of the Act and that these amendments are clarificatory in nature, the addition made by the DCIT(CPC), Bengaluru on account of delayed payment of employee’s contribution of PF/ESl of Rs.12,57,305/- is confirmed. 5. The Appellant craves leave to add, alter, amend or modify any of the grounds of appeal.” 3. Suffice to say, it has come on record that the assessee’s sole substantive grievance canvassed in the instant appeal challenges correctness of both the learned lower authorities action invoking sec.36(1)(va) r.w.s. 43B disallowance representing employees contribution to the tune of Rs.12,57,305/- which had not been deposited before the “due date” under the corresponding statute(s). That being the case, we quote hon’ble apex court’s recent landmark decision in Checkmate Services P. Ltd., vs. CIT & Ors. 3 ITA.No.13/PAN./2022 [2022] 448 ITR 518 (SC) and confirm the impugned disallowance in very terms. Ordered accordingly. 4. No other ground or argument has been raised before us. 5. This assessee’s appeal is dismissed in above terms. Order pronounced in the open court on 08.08.2023. Sd/- Sd/- [G.D. PADMAHSHALI] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 08 th August, 2023 VBP/- Copy to 1. The appellant 2. The respondent 3. The NFAC, Delhi 4. The Pr. CIT, Belgavi. 5. D.R. ITAT, Panaji Bench, Panaji 6. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches, Pune.