SENTRIGO SAFEGUARDS PRIVATE LIMITED, AGRA V. COMMISSIONER OF INCOME TAX (APPEALS), INCOME TAX DEPARTMENT NATIONAL FACELESS APPEAL CENTRE (NFAC)

ITA 139/AGR/2022

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 9098 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 09-08-2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B

Judgement Text

ITA No.- 139/Del/2022 Sentrigo Safeguard Pvt. Ltd. Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH: SMC (VIRTUAL HEARING AT DELHI) BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No:- 139/Agr/2022 ( Assessment Year: 2018-19) Sentrigo Safeguards Pvt. Ltd., 92, Sector-5, Avas Vikas Colony, Uttar Pradesh. Vs. CIT (A), Income Tax Department, National Faceless Appeal Centre (NFAC). APPELLANT RESPONDENT PAN No: AANCS4378M Assessee By : None Revenue By : Shri Shailendra Srivastava, Sr. DR Date of Hearing : 16.01.2024 Date of Pronouncement : 22.01.2024 ORDER PER SHAMIM YAHYA, A.M. This appeal by the Assessee is directed against the order passed by the Learned Commissioner of Income Tax (Appeals)/ NFAC, New Delhi, dated 10.06.2022 and pertains to Assessment Year 2018-19. 2. Brief facts of the case are that in respect of employees' contribution to PF & ESI, in certain months, the appellant has deposited the amounts beyond the due dates ITA No.- 139/Del/2022 Sentrigo Safeguard Pvt. Ltd. Page 2 of 4 prescribed in the respective Acts. The deposits have been made before the due date of filing of Income Tax Return. 3. As per Ld. CIT(A), Employees contribution to PF and ESI is deemed as income of the employer u/s 2(24)(x), and the same is allowable as deduction u/s 36(1)(va) of the IT. Act. Section 36(1)(va) stipulates that such payment by employer is allowed only if such sum is credited to the employee's account in the relevant fund or funds on or before the due date under the relevant Act. Section 36(1)(va) is applicable in respect of employee's contribution to PF and ESI, and if the same is not deposited within the due date prescribed under the respective Acts, the same does not become allowable by virtue of section 43B, even if it is deposited before the due date of filling of Income Tax Return. Accordingly, this amount has not been allowed by CPC under Section 43B of the Act and it has disallowed such amounts of employee's contributions where the deposit has been made by the appellant after the due dates under the respective Acts. 4. Upon the assessee’s appeal, the Ld. CIT(A) confirmed the disallowance by elaborately discussing and finally concluded as under: “5.13 In view of the above discussion and considering the clarificatory amendment in law, the claim of the appellant cannot be accepted. Hence, the amounts of employees' contribution to the PF/ESI paid by the appellant before filing of the Income Tax Return cannot be allowed as deduction under section 43B of the Income Tax Act. As the amounts once received from the employees are deemed as income of the appellant under Section 2(24)(x) of the I,T. Act, and as the same has not been deposited within the due date prescribed under the respective laws, the same is not deductible u/s 36(1) (va) of the I.T Act. Hence, the action of CPC is adding the amount as income of the appellant is correct and as per law.” 5. Against this order, the assessee filed an appeal before the ITAT. ITA No.- 139/Del/2022 Sentrigo Safeguard Pvt. Ltd. Page 3 of 4 6. We have heard the Ld. DR. None appeared on behalf of the assessee. Ld. DR submitted that the issue is now squarely covered and against the assessee by the decision of Hon’ble Supreme Court in the case of Check Mate Services Private Limited 448 ITR 518. 7. In this case, Hon’ble Apex Court categorically held that PF-ESI payment done beyond the specified date, in the respective Acts should be disallowed and added to the income of the assessee. Respectfully following the precedent mentioned above, we uphold the orders of the authorities below. 8. In the result, appeal of the assessee is dismissed. Order Pronounced in the Open Court on 22.01.2024 Sd/- Sd/- (ASTHA CHANDRA) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 22/01/2024 (Pooja) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA No.- 139/Del/2022 Sentrigo Safeguard Pvt. Ltd. Page 4 of 4 Date of dictation 16.01.24 Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order