INFICARE SOFTWARE TECHNOLOGIES PVT. LTD., Noida V. Circle-1(1), Haryana

ITA 1318/DEL/2021

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Inficare Software Technologies Pvt. Ltd. appealed against the order of the CIT(Appeals) - National Faceless Appeal Centre, which had dismissed their earlier appeal regarding several disallowances made by the AO for the Assessment Year 2018-19. The primary issues included the disallowance of belated payments to ESI and EPF, the carry forward of a declared loss, and a claimed tax refund. The Tribunal noted that the issue of allowability of belated payments to ESI and EPF had been settled by the Supreme Court in a previous case. The Tribunal found merit in the assessee's argument that the AO had erroneously consolidated the amounts of employees' and employers' contributions while making disallowances. Consequently, the Tribunal remanded the matter back to the AO for a fresh assessment on these grounds.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 116195 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 11-10-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 03-10-2021
• Other Referred Cases: Checkmate Services Pvt. Ltd vs. CIT reported in 448 ITR 518
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SAHIL GOYAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’: NEW DELHI BEFORE, SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No.1318/Del/2021 (ASSESSMENT YEAR-2018-19) Inficare Software Technologies Pvt. Ltd. D-29, 2 nd Floor, Sector-2 Noida-201 301 Uttar Pradesh PAN-AADCI 1707L Vs. CIT(Appeals) National Faceless Appeal Centre (NFAC), Delhi (Appellant) (Respondent) Appellant by Sh. Sahil Goyal, Adv. Respondent by Sh. Sandip Kumar Mishra, Sr. DR Date of Hearing 12/10/2023 Date of Pronouncement 17/10/2023 ORDER PER YOGESH KUMAR U.S., JM: This appeal by Assessee is filed against the order of Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT(A)”, for short], dated 30/07/2021 for Assessment Year 2018-19. The Revised Grounds taken in this appeal are as under: 2 ITA No.1318/Del/2021 Inficare Software Technologies Pvt. Ltd. Vs. CIT(A), NFAC “As per the directions of this Hon'ble Tribunal, the modified grounds of Appeal in the present matter are as follows: 1. That the Ld. CIT has erred in passing the impugned order without appreciating the facts and submissions on record. 2. That the Ld. CIT has failed to appreciate that while adjudicating the penalty on delayed payments of employees contribution towards ESI and EPF Funds, the AO has taken the consolidated amount of employees' and employers' contribution in ESI and EPF funds. Respective charts are annexed herewith. 3. That the Ld. CIT has failed to appreciate that the Assessee has claimed a loss in current year to be carried forward to an amount of Rs. 1,29.061/- which has been disallowed by the AO. 4. That the Ld. CIT has failed to appreciate that the Assessee has claimed a tax refund of Rs. 28,050/- which has been disallowed by the AO without any reason. 5. That the Assessee craves leave to add/ modify any other grounds at the time of arguments.” 2. The brief facts of the case are that the assessee filed return declaring loss of Rs.-1,33,337/- and subsequently revised by declaring net loss of Rs.-1,29,061/-. While processing the return of income of the Assessee, the CPC, Bangalore, vide intimation dated 16/10/2019 disallowed Rs.13,21,995/- claimed by the Assessee on account of Employee’s contribution in ESI and EPF as payment was made after belated due date in respective acts. 3 ITA No.1318/Del/2021 Inficare Software Technologies Pvt. Ltd. Vs. CIT(A), NFAC 3. Aggrieved by the said intimation dated 16/10/2019, the assessee preferred an appeal before the Ld. CIT(A), the Ld. CIT(A) vide order dated 30.07.2021 dismissed the appeal filed by the assessee. As against the order of the Ld. CIT(A), the assessee preferred the present appeal on the grounds mentioned above. 4. The Ld. Counsel for the assessee fairly submitted that the issue of allowability of belated payment to ESI and EPF has already been settled by the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd vs. CIT reported in 448 ITR 518. On the other hand, the Ld. Counsel for the assessee submitted that the AO has taken the consolidated amount of Employees’ and Employers’ contribution in ESI and EPF while making disallowance and the Ld. CIT(A) has also not considered said actual factual aspect while confirming the disallowance. The Ld. AR has also provided the details/chart of consolidation of Employees and Employers’ payment towards ESI and EPF for the year under consideration and sought for remanding the matter to the file of AO to decide the issue afresh. 4 ITA No.1318/Del/2021 Inficare Software Technologies Pvt. Ltd. Vs. CIT(A), NFAC 5. The Ld. DR vehemently submitted that the disallowance have been made by the AO in accordance with the law and the assessee has not canvassed before the CIT(A) regarding consideration of the consolidated amount and employees’ and employers’ contribution in ESI and EPF by the A.O., therefore, submitted that the present appeal is liable to dismissed. 6. We have heard both the parties and perused the materials available on record. It is the case of the Assessee that the AO has erroneously consolidated amount of Employers’ and Employees’ contribution to ESI and EPF while adjudicating the penalty for belated payment of Employees’ contribution towards ESI and EPF and to substantiate the claim, the Ld. A.R provided the details/chart reflecting the payments made by the Assessee. Considering the above facts and circumstances and the submissions made by the Ld. AR, we restore the issue involved in Ground No. 2 to the file of the AO to decide the same afresh after taking into the consideration of the documents/submissions made by the assessee. Accordingly, the grounds No.2 the assessee is partly allowed for statistical purpose. 5 ITA No.1318/Del/2021 Inficare Software Technologies Pvt. Ltd. Vs. CIT(A), NFAC 7. Ground No.3 regarding disallowance of carry forward loss to an amount of Rs.1,29,061/-. It is the case of the assessee that the CIT(A) failed to appreciate that the assessee had claimed loss in the current year to be carry forward an amount of Rs.1,29,061/- which has been erroneously disallowed by the AO. In view of the above facts and circumstances, we remand the issue involved in Ground No. 3 to the file of the A.O. for de-novo adjudication after considering the contention of the Assessee. Accordingly, the Ground No. 3 of the Assessee is partly allowed for statistical purpose. 8. Ground No. 4 is regarding tax refund of Rs. 28,050/-. The Ld. AR submitted that the assessee had claimed a tax refund of Rs.28,050/- which has been erroneously disallowed by the AO. Considering the above facts and circumstances, the issue involved in ground No. 4 is also restored to the file of the AO with a direction to verify the contention of the Assessee regarding tax refund and decide the same in accordance with law. Accordingly, the Ground No. 4 of the Assessee is partly allowed for statistical purpose 6 ITA No.1318/Del/2021 Inficare Software Technologies Pvt. Ltd. Vs. CIT(A), NFAC 9. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in open Court on 17 th October, 2023. Sd/- Sd/- (SHAMIM YAHYA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 17/10/2023 Pk/R.N, Sr.ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI