JCIT Central Circle-19,New Delhi, Delhi V. M/s Jaquar and Company Pvt Ltd, Delhi

ITA 1713/DEL/2022

AI Insights

The case involves an appeal by the JCIT Central Circle -19, New Delhi against M/s Jaguar and Company Pvt. Ltd., concerning the deletion of a disallowance of Rs.41,40,340 made under section 143(1) of the Income Tax Act, 1961, by the CPC, Bangalore. The disallowance was related to late payment of PF and ESI. The CIT(A) had provided relief to the respondent by interpreting the provisions of Section 143(1)(a)(ii) and Section 36(1)(va) in a manner favorable to the respondent, which the revenue contested, citing a jurisdictional Delhi High Court ruling in CIT vs. Bharat Hotel Ltd. The tribunal, however, did not proceed to address the substantive issues due to the threshold limit of the tax effect as per the CBDT circular.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 116140 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-08-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 27-07-2022
• Other Referred Cases: CIT vs. Bharat Hotel Ltd. 410 ITR 417 (2019)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DALEEP BHATIA
• Keywords: Tax effect
• Section: 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH.KUL BHARAT, JUDICIAL MEMBER ITA No.1713/Del/2022 Assessment Year: 2018-19 JCIT Central Circle -19 New Delhi Vs M/s Jaguar and Company Pvt. Ltd. C-20, SMA Co-op Industrial Estate, GT Karnal Road, Jahangir Puri, A Block Delhi, Delhi PAN No.AAACJ2324F (APPELLANT) (RESPONDENT) Appellant by Sh. R.K. Jain, Sr DR Respondent by Sh. Daleep Bhatia, CA Date of hearing: 24/08/2023 Date of Pronouncement: 24/08/2023 ORDER PER N. K. BILLAIYA, AM: This appeal filed by the revenue is preferred against the order of CIT(A)-27, New Delhi dated 23.05.2022 for A.Y. 2018-19. 2. The grievance of the revenue read as under :- 1) The Ld. CIT(A) has erred on facts and in law, by deleting the disallowance of Rs.41,40,340/- u/s 143(1) made by the CPC, Bangalore on account of late payment of PF and ESI. 2 2) The Ld. CIT(A) has erred on facts and in law in providing relief amounting to Rs.41,40,340/- by erroneously stating that the CPC, Bangalore does not fall under the prima facie adjustment on account of late payment of PF and ESI by not correctly interpreting the provisions of Section 143(l)(a)(ii) of the I.T. Act, 1^61. 3) The Ld. CIT(A) has erred on facts and in law by not considering the provisions of Section 143(l)(a)(ii), where, total income or loss shall be computed after making an adjustment if such incorrect claim is apparent from any information in the return. 4) The Ld. CIT(A) has erred on facts and in law in not correctly interpreting the provisions of Section 36(l)(va) and Explanation to this clause which specifically provides for allowance of the employee’s contribution from the taxable income if such sum is credited to the employee’s account in the relevant funds(s) on or before the due date as per respective statute(s). 5) The Ld. CIT(A) has erred on facts and in law in not relying on the ruling of jurisdictional Delhi High Court in the case of CIT vs. Bharat Hotel Ltd. 410 ITR 417 (2019), in which this issue was decided in favour of the Revenue. 6) (a) The order of the Ld. CIT(A) is erroneous and not tenable in law and on facts. (b) The appellant craves to add, alter of amend any/all of the ground of appeal before or during the course of the hearing of the appeal. 3. A perusal of the grievance of the revenue show that the tax effect would be less than Rs. 50 lakhs, therefore, this appeal is not maintainable as per CBDT Circular No.17/2019 dated 08.08.2019. 4. This appeal is, accordingly, dismissed with liberty to the revenue to approach the Tribunal as per the provisions of law, should it feel that the tax effect is more than Rs. 50 lakhs. 5. In the result, the appeal filed by the revenue is dismissed. 3 6. The order is pronounced in the open court on 24.08.2023 in the presence of both the rival representatives. Sd/- Sd/- (KUL BHARAT) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER *NEHA* Date:- .08.2023 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI