Nupal Remedies Pvt. Ltd., Ernakulam V. The ITO, Ernakulam

ITA 18/COCH/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 1374 (ITAT-COCHIN)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 06-01-2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri George George K, JM & Shri Laxmi Prasad Sahu, AM ITA No.18/Coch/2022 : Asst.Year 2019-2020 M/s.Nupal Remedies Pvt. Ltd. P.B.No.2051, Nupal Road Kadavanthra Ernakulam – 682 020. PAN : AAACN9292L. v. The Income Tax Officer Corporate Circle 2(1) Kochi. (Appellant) (Respondent) Appellant by : Sri.Anil K.Nayar, CA Respondent by : Smt.J.M.Jamunna Devi, Sr.DR Date of Hearing : 29.06.2022 Date of Pronouncement : 30.06.2022 O R D E R Per George George K, JM : This appeal at the instance of the assessee is directed against CIT(A)’s order dated 27.09.2021. The relevant assessment year is 2019-2020. 2. The solitary issue raised is whether the CIT(A) is justified in confirming the disallowance of employees’ contribution to PF and ESI u/s 36(1)(va) of the I.T.Act. 3. The brief facts of the case are as follows: For the assessment year 2019-2020, the employees’ contribution to PF and ESI was disallowed u/s 36(1)(va) of the I.T.Act for not making payments within the due date prescribed under the relevant Acts, amounting to Rs.4,22,190. ITA No.18/Coch/2022. M/s.Nupal Remedies Private Limited 2 4. Aggrieved, the assessee preferred appeal before the first appellate authority. The CIT(A) dismissed the appeal of the assessee by relying on the judgment of the Hon’ble jurisdictional High Court in the case of CIT v. Merchem Limited reported in (2019) 378 ITR 443 (Ker.)]. 5. Aggrieved, the assessee has filed the present appeal before the Tribunal. The Managing Director of the assessee, Sri.Padmanabhan Krishnakumar, has filed an adjournment application stating that he is indispose, however, the learned AR representing the assessee Sri.Anil K Nayar was present. Therefore, the adjournment application was rejected and the matter was heard on merits. The learned AR relied on the ground raised. 6. The learned Departmental Representative submitted that the issue in question is squarely covered by the judgment of the Hon’ble jurisdictional High Court in the case of CIT v. Merchem Limited (supra). 7. We have heard rival submissions and perused the material on record. The assessee is claiming deduction of delayed remittance of employees’ contribution to PF and ESI, stating that the same has been deposited before the due date of filing return u/s 139(1) of the I.T.Act. However, the Hon’ble jurisdictional High Court in the case of CIT v. Merchem Limited (supra) had clearly held that employees’ share of PF and ESI, which was not deposited within the due date under the respective Acts, is not an allowable deduction u/s 36(1)(va) of ITA No.18/Coch/2022. M/s.Nupal Remedies Private Limited 3 the I.T.Act. Therefore, following the judgment of the Hon’ble jurisdictional High Court in the case of CIT v. Merchem Limited (supra), we hold that since the employees’ contribution to PF and ESI was not deposited within the due date specified in the relevant Acts, the same cannot be allowed as a deduction u/s 36(1)(va) of the I.T.Act. It is ordered accordingly. 8. In the result, the appeal filed by the assessee is dismissed. Order pronounced on this 30 th day of June, 2022. Sd/- (Laxmi Prasad Sahu) Sd/- (George George K) ACCOUNTANT MEMBER JUDICIAL MEMBER Kochi ; Dated : 30 th June, 2022. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(A) NFAC, Delhi 4. The CIT, Cochin. 5. The DR, ITAT, Cochin. 6. Guard File. Asst.Registrar/ITAT, Cochin