Ashok Kumar, New Delhi V. ITO, Ward 1(5), Gurgaon

ITA 1600/DEL/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 4364 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 03-01-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 23-05-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 154; 15; 43B; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” DELHI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.1600/DEL/2023 Assessment Year 2020-21 Ashok Kumar C/o The Tax Chambers Advocates & Legal Advisors C-177, Defence Colony, LGF, Delhi. Vs. ITO Ward-1(5) Gurgaon TAN/PAN: BBOPK6740B (Appellant) (Respondent) Appellant by: Ms. Swati Talwar, Adv. Respondent by: Shri Kanav Bali, Sr.DR Date of hearing: 04 01 2024 Date of pronouncement: 10 01 2024 O R D E R PER PRADIP KUMAR KEDIA-A.M. : T he capt ione d a ppeal has bee n file d by t he assess ee a gainst the order of t he C o mmi ss ione r of Income Tax (A ppeals), National Facel ess Ap peal C ent re (N FA C ), Del hi (‘C IT (A) ’ in shor t) dated 24. 03.2023 a risi ng from the inti mation orde r da ted 28. 10. 2021 passed b y t he A ssessing O ffic er (A O ) under Sec tion 1 43(1 ) o f the Income T ax A ct, 1961 (the Act ) conc er ning A Y 2020-21. 2. When the matter w as calle d fo r hearin g, the ld. couns el for the assess ee su bmit te d that al th ough sever al groun ds have bee n ra ise d, t he s ol ita ry d isp ute is c onfi ned t o dis al lowance of Rs. 17, 83,170/- c onf ir med by the C IT (A ) on the w ro ng premise that such a mou nt re pr ese nts late d eposits o f emplo ye es I.T.A. No.1600/Del/2023 2 cont ri but io n t ow ar ds PF/ES I under Sect ion 36(1)(va ) as aga inst the c orrec t posi ti on that such a mount repr ese nts emplo ye r’s cont ri but io n ra th er than emplo yees c ont ri but ion. The l d. couns el submit ted that c ompliance o f Secti on 4 3B has been made and the pa yme nts w ere made be fore the due da te of fili ng of re tu rn of inco me under Section 139(1). Delineating fur ther, the ld. couns el fur th er poi nt ed out that the Cen tr al P ro cess in g C ent re, Benga lu ru (CPC ) processe d int imati on und er Sec ti on 143(1) da ted 28. 10. 2021 and inter ali a d isa llowe d Rs. 17, 83, 170/ - clai med by the ass essee tow a rds empl oye r’s contr ib ut ion t o PF/E SI in tune w ith Sect ion 43B of the A ct w ro ngl y a ssumi ng it to b e e mplo ye e cont ri but io n. Howeve r, on reali zi ng the mis ta ke, the CPC suo m otu re ct ified the af oresaid int imat ion b y p ass ing or der da te d 15. 06.2022 un der Sect i on 143 (1) r. w . Section 15 4 of t he A ct w her ei n t he mis t ake w as take n c ognizance and t he w ron gful dis al low ance made earlier tow ards the i mpu gned e mp lo yer ’s cont ri but io n w as recti fie d a nd the c orrec t pos it io n as c l ai me d was res to re d. Howeve r, mea nw hile the assessee pre fe rred i mpugned appea l bef ore t he CIT (A ) agai nst the ori gina l intimati on. The CIT (A ) w rongful l y c onfi rmed the original i nti ma ti on wi thout taki ng cogniza nc e of t he rect ificat ion order passed u nder Se ct ion 154 wh ich acc epted the co rrec t positi on t ha t the a mou nt of Rs. 17, 83,170/- r epr ese nts e mplo ye r’s co ntr ibut ion and t hus is govern ed b y Sec ti on 43B of the Ac t and provisi ons of Secti on 36( 1)(va) wo ul d not appl y i n res pect of emplo ye r’s cont ribut i on. The l d. counsel fu rt her pointed o ut t hat t he aforesaid a mount of Rs. 17, 83,170/- a ttributa ble to empl oye r’s contri buti on e ma na tes fro m facts on re cord an d the refor e, the orde r of the C IT (A ) re qui res to be set asi de t o res to re the st an ce of the as sessee a nd I.T.A. No.1600/Del/2023 3 assess corre ct i nc ome i n accorda nce w ith law . On bein g inqui re d by t he Be nc h, t he ld. counse l fai rl y s ubmit ted that a not her dis p ute of Rs. 72,093/- rai sed in t he gr ounds of ap peal re lates to la te depos it of PF /ESIC t ow ar ds e mp loyee ’s co nt ribut ion and thus Sect ion 36(1)(va) woul d ap pl y. Hence, assess ee does not seek t o press suc h gri evan ce ra ise d in the gr ounds. 3. T he ld. D R for the Revenue did not offer an y comme nt. 4. In t he l ight of t he sub miss ions ma de on be hal f of the assessee and h avi ng rega rd t o the ma terial availa ble on reco rd, w e fi nd pa l pab le jus tificati on i n the rel ie f sought b y the ass essee. The denial of re l ie f in respec t o f emplo ye r’s cont ributi on amounting t o Rs. 17, 83,170/- by the C IT (A ) on misc onc epti on of facts is thus re ve rsed a nd t he p ositi on adopted b y th e Assess ing O ff ice r in the rect ifica t io n order passe d unde r Secti on 154 is restore d. 5. In the res ul t, the appeal of t he asses see is pa rt l y al low ed. Order pronounced in the open Court on 10/01/2024 Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] VICE PRESIDENT ACCOUNTANT MEMBER DATED: /01/2024 Prabhat