Royal Security Service , Gwalior V. JCIT (OSD),Circle -2 , Gwalior

ITA 166/AGR/2022

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 4195 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 16-01-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 12-10-2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 154; 2; 43B; 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH ‘DB’ : AGRA BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCE) ITA No.166/AGR/2022 (Assessment Year: 2018-19) Royal Security Services, vs. JCIT (OSD), Circle 2, 2 nd Floor, Alaknanda Tower, Gwalior, Above ICICI Bank, City Centre, Main Road, Gwalior (Madhya Pradesh). (PAN : AAEFR6335F) (APPELLANT) (RESPONDENT) ASSESSEE BY : None REVENUE BY : Shri Shailendra Srivastava, Sr. DR Date of Hearing : 17.01.2024 Date of Order : 24.01.2024 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order of the ld. CIT (Appeals)/National Faceless Appeal Centre (NFAC) dated 17.08.2022 for the assessment year 2018-19. 2. Brief facts of the case are that aassessee is a partnership firm and was engaged in the business of security services. Return of income for the year under consideration was filed u/s 139(1) of the Income Tax Act, 1961 on 2 ITA No.166/AGR/2022 04/10/2018 declaring total income of Rs.32,94,234/-. While processing ITR of the assessee firm, disallowance of Rs.1,18,35,942/- was done by CPC Bangalore on account of disallowance u/s 36(1)(va) due to deposit of employees contribution of PF and ESI after due date. Against such disallowance, an application u/s 154 of the Act was filed before AO stating that delay deposit of employees contribution of PF and ESI is settled issue by various decisions of ITAT and High Courts and it cannot be disallowed hence disallowance made by CPC Bangalore may be rectified and same expenses may be allowed to the assessee. AO rejected the application of assessee. 3. Upon assessee’s appeal, ld. CIT (A) elaborately considered the issue and confirmed the order of the AO by concluding as under :- “ Accordingly, in other to provide certainty, the finance Act, 2021 amended clause (va) of sub-section (1) of the section 36 of the Act by inserting another explanation to the said clause to clarify that the provision of section 43B does not apply and deemed to never have been applied for the purposed of determining the "due date" under that clause; and also amended section 43B of the Act by inserting Explanation 5 to the said section to clarify that the provisions of the said section do not apply and deemed to never have been applied to a sum received by the assessee from any of his employees to which provisions of sub-clause (x) of clause (24) of section 2 applies. 3.6 Keeping in view the amendments made by the Finance Act, 2021 in section 36 and section 43B of the Act and that these amendments are clarificatory in nature, the addition made by the JCIT(OSD), Circle-2(1), Gwalior on account of delayed payment of employee's contribution of PF/ESI of 3 ITA No.166/AGR/2022 Rs.1,18,35,9421- is/confirmed. Therefore these grounds of appeal are dismissed.” 4. Against the above order, assessee is in appeal before us. We have heard ld. DR for the Revenue and perused the records. None appeared on behalf of the assessee. 5. Ld. DR for the Revenue submitted that the issue is squarely covered against the assessee by the decision of Hon’ble Apex Court in the case of Checkmate Services Pvt. Ltd. (2022) 143 taxmann.com 178. 6. Upon careful consideration, we find that the issue is covered against the assessee by the aforesaid decision of Hon’ble Supreme Court. Accordingly, we do not find any infirmity in the order of the ld. CIT (A). Hence, we uphold the same. 7. In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on this 24 th day of January, 2024. Sd/- sd/- (ANUBHAV SHARMA) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 24 th day of January, 2024 TS 4 ITA No.166/AGR/2022 Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT (A). 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.