Vishwaranjan Prasad Singh, Bhopal V. DCIT ,CPC, Bangaluru

ITA 139/Ind/2022

AI Insights

The case involves Vishwaranjan Prasad Singh, a proprietor of World Wide Security Organization, who appealed against the order of the CIT(A) / NFAC, which confirmed an addition of Rs. 2,87,46,530 to his income for the Assessment Year 2019-20. This addition was initially made by the Assessing Officer during the preliminary assessment under Section 143(1) of the Income Tax Act, 1961, due to the delayed deposit of employees' contributions to Provident Fund and Employee State Insurance. The assessee argued that the contributions were made before the deadline specified under Section 139 of the Act, but this was not accepted by the CIT(A) / NFAC, leading to the appeal before the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122453 (ITAT-INDORE)
• Duration Of Justice: 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 05-02-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 25-05-2022
• Other Referred Cases: Checkmate Services Pvt. Ltd. vs. CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 2; 139; 143(1); 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE (CONDUCTED THROUGH VIRTUAL COURT) BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER & SHRI BHAGIRATH MAL BIYANI, ACCOUNTANT MEMBER I .T .A . N o .1 3 9 /I nd /2 0 2 2 ( A s se ss m e nt Y e a r : 20 19- 2 0 ) V i sh wa r anj a n Pr a sa d Sin gh Pr op Wo r l d Wi d e S e cu ri t y O R G , H -2 0 3, Ba gh mu g a li a E xt e n s i on , B h op al, M .P . 46 20 4 3 V s . DC I T CP C, Be ng a lu r u PA N No .A C P P S 7 52 0Q (Appellant) .. (Respondent) Appellant by : Shri S. S. Deshpande, C.A. Respondent by : Shri Ashish Porwal, Sr. D.R. D a t e of H ea r i ng 06.02.2023 D a t e of P r o no u n ce me nt 22.02.2023 O R D E R PER SUCHITRA KAMBLE - JM: This appeal is filed by the assessee against the order dated 30.03.2022 passed by the Ld. CIT(Appeals), National Faceless Appeal Centre (in short “NFAC”), Delhi for A.Y. 2019-20. 2. The grounds of appeal raised by the assessee read as under: “1. On the facts and in the circumstances of the case of the assessee the Ld. Commissioner of Income Tax Appeals NFAC, Delhi was not justified in confirming addition of Rs. 2,87,46,530.00 under section 143(1) of the act ignoring the fact that the disallowance is highly disputed and cannot be disallowed under section 143(1). 2. On the facts and in the circumstances of the case of the assessee the Ld. Commissioner of Income Tax Appeals NFAC, Delhi was not justified in confirming addition of Rs. 2,87,46,530.00, received by the assessee towards contribution to any provident fund or any fund set up for the welfare of employees and had paid all such sums before the time limit specified under section 139 of the Income Tax Act, 1961. ITA No.139/Ind/2022 Vishwaranjan Prasad Singh vs. DCIT Asst.Year –2019-20 - 2 – 2. The assessee craves leave to add, alter amend or withdraw any ground of appeal on or before the time of hearing.” 3. The assessee is a proprietor carrying on the business in the name of World Wide Security Organization. Income Tax Return for the A.Y. 2019-20 was filed by the assessee on 02.10.2019 declaring total income of Rs. 2,47,37,330/-. The preliminary assessment under Section 143(1) was completed on 14.07.2020, therefore, intimation was issued at total income of Rs. 5,34,83,860/- thereby making addition of Rs. 2,87,46,530/- on account of delayed deposit of employees contribution to Provident Fund and Employee State Insurance in to the Government account under Section 36(1)(va). 4. Being aggrieved by the assessment / intimation the assessee filed appeal before the CIT(A) / NFAC. The CIT(A) / NFAC dismiss the appeal of the assessee. 5. The Ld. A.R. submitted that the CIT(A) / NFAC was not justified in confirming addition of Rs. 2,87,46,530/- received by the assessee towards contribution to Provident Fund or fund set up for the welfare of the employees and had paid all such sums before the time limit specified under Section 139 of the Income Tax Act, 1961. 6. The Ld. D.R. relied upon the assessment order and the order of the CIT(A) / NFAC. 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the Hon’ble Supreme Court in case of Checkmate Services Pvt. Ltd. vs. CIT, Civil Appeal No. 2833 of 2016 order dated 12.10.2022 decided the issue against the assessee as the delayed payment of Provident Fund and ESI was after the statutory due limit and ITA No.139/Ind/2022 Vishwaranjan Prasad Singh vs. DCIT Asst.Year –2019-20 - 3 – therefore, the CIT(A) / NFAC and the Assessing Officer has rightly made disallowance. There is no need to interfere with the findings of the CIT(A) / NFAC. Hence, appeal of the assessee is dismissed. 8. In result, the appeal of the assessee is dismissed. This Order pronounced in Open Court on 22/02/2023 Sd/- Sd/- (BHAGIRATH MAL BIYANI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 22/02/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण,इंदौर/ DR, ITAT, Indore 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, (Sr. Private Secretary) ITAT, Indore 1. Date of dictation 14.02.2023 2. Date on which the typed draft is placed before the Dictating Member 14.02.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .02.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .02.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S 22 .02.2023 7. Date on which the file goes to the Bench Clerk 22 .02.2023 8. Date on which the file goes to the Head Clerk.......................................... 9. The date on which the file goes to the Assistant Registrar for signature on the order.......................... 10. Date of Despatch of the Order.......................................... O r d e r p r o n o u n c e d o n 2 2/02/ 2 0 23 b y p l a c i n g t h e r es u l t o n t h e N o t i c e B o a r d a s p e r R u l e 3 4 ( 4 ) o f t h e In c o m e T ax ( A p p e l l at e T r i b u n al ) R u l e, 1 9 6 3 .