M/s Vacmet India Limited, Agra V. Dy CIT,Circle 2(1)(1) , Agra

ITA 157/AGR/2022

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 2226 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 16-01-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 05-09-2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SRIVASTAVA
• Assessee Lawyers: PANKAJ GARG
• Section: 147; 143(3); 250; 143(1); 139(1); 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH : DB : AGRA (Through Video Conferencing) BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.157/Agr/2022 Assessment Year: 2017-18 M/s Vacmet India Limited, 4/117-2A, Civil Lines, Church Road, Agra. PAN: AAACV5120B Vs DCIT, Circle 2(1)(1), Agra. (Appellants) (Respondents) Assessee by : Shri Pankaj Garg, Advocate Revenue by : Shri Shailendra Srivastava, Sr. DR Date of Hearing : 17.01.2024 Date of Pronouncement : 05.03.2024 ORDER PER ANUBHAV SHARMA, JM: This appeal is preferred by the Assessee against the order dated 12.07.2022 of the National Faceless Appeal Centre, Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal No.CIT(A)-2, Agra/10558/2019-20 arising out of the appeal before it against the order dated 30.03.2022 passed u/s 147 r.w.s.144B of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the National Faceless Assessment Centre (hereinafter referred to as the Ld. AO). 2. Heard and perused the record. ITA No.157/Agr/2022 2 3. The assessee is in appeal raising the following grounds:- “1. Because the Ld. CIT(A) NFAC has erred in confirming the addition of Rs.24,28,922/- vide Appellate Order dated 12.07.2022 u/s 250 of the I.T Act. This amount is of the Employee Contribution towards ESIC/PF been made after due date as prescribed under relevant PF/ESI Acts but the same is paid before due date of filing the return u/s 139(1) of the I.T Act. 2. Because the Ld.CIT(A) NFAC has erred in rejecting and dismissing the fact that all the payments of PF/ESI have duly been paid much before the due date of filing the return and is allowed as per amendment by Finance Act 2003 in Section 43B and duly concluded by Hon’ble Allahabad High Court in the Judgement of Sagun Iron Foundry Pvt. Ltd vs CIT, Kanpur. 3. Because Ld. CIT(A) NFAC has placed reliance on the amendment in Section 36(l)(va) of the I.T Act w.e.f 01.04.2021. Recently Hon’ble ITA'F Agra Bench vide consolidated Order of various appeals pronounced on 21.03.2022 has considered the issue of amendment w.e.f 01.04.2021 and has held that the said amendment is prospective and deleted the additions made of PF/ESI. 4. Because the addition of Rs. 24,28,922/- confirmed by Ld. CIT(A) NFAC is wrong, bad in law and deserves to be deleted. 5. The Appellant prays leave to add, amend, alter, delete or forego any of the grounds either before or during the course of hearing. 4. At the time of argument, it came up that the only issue involved in this appeal is the fact that a disallowance was made in the intimation u/s 143(1) of the Act on account of delayed deposit of the employees contribution to Provident Fund/ESI. The matter stands settled by the judgement of the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. vs CIT (2022) 143 taxmann.com 178 (SC). 5. In this regard, it comes up that Revenue in making disallowance towards late deposit of employees contribution to Provident Fund/ESIC was supported by the judgment rendered in the case of Checkmate Services (P.) Ltd. vs CIT (2022) ITA No.157/Agr/2022 3 143 taxmann.com 178 (SC). We are of considered view that delayed deposit of employees contribution indicated in the Audit Report is sufficient for disallowance u/s 143(3) of the Act or for an adjustment under section 143(1) of the Act, as also held by the Pune Bench of the Tribunal in the case of Cemetile Industries vs ITO TS-933-ITAT-2022 (Pune). Further the Co-ordinate Bench of the Tribunal in Savleen Kaur & Others vs ITO in ITA Nos. 2249/Del/2022 & Others for Assessment Year 2018-19 & Others vide order dated 09.01.2023 and in Weather Comfort Engineers Private Limited vs. ACIT-CPC ITA No. 959/Del/2021 order dated 15/02/2023 and in ITA No.1658/Del/2021, for AY 2018-19, titled BT Data and Surveying Services India Pvt.Ltd vs ITO, Circle Int. Tax-4(2), Delhi vide order dated 7/02/23 and ITA No. 1109/DEL/2023 A.Y. 2019-20 M/s Magna Automations Limited Vs DCIT, Circle-16(1), New Delhi vide order dated 13/10/23, also, Co-ordinate Bench, in which one of us was in quorum has decided the issue in favour of Revenue. The grounds have no substance. 6. In the result, the appeal is dismissed. Order pronounced in the open court on 05.03.2024. Sd/- Sd/- (SHAMIM YAHYA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 05.03.2024. dk ITA No.157/Agr/2022 4 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi