Manipal Singh Walia (L/H of Kirpal Singh), New Delhi V. ITO, Ward- 52(1), Delhi

ITA 182/DEL/2023

AI Insights

The case involves appeals by Manipal Singh Walia against the orders of the National Faceless Appeal Centre (NFAC) for the Assessment Years 2018-19 and 2019-20. The primary issue in these appeals was the disallowance made by the Central Processing Centre (CPC) regarding employees' contributions to PF and ESI under section 36(1)(va) of the Income-tax Act, 1961. The CIT (A) had upheld this disallowance, but the assessee argued that their submissions were not considered. The Tribunal noted the oversight and decided to remit the matter back to the CIT (A) for a fresh evaluation in light of the assessee's submissions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114036 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 08-03-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 26-01-2023
• Other Referred Cases: Checkmate Services Pvt. Ltd. (2022) 143 taxmann.com 178
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘SMC’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA No.181/Del./2023 (ASSESSMENT YEAR : 2018-19) ITA No.182/Del./2023 (ASSESSMENT YEAR : 2019-20) Manipal Singh Walia, vs. ITO, Ward 52 (4), (Legal Heir of Kirpal Singh), Delhi. B-1A, 88A, Janakpuri, New Delhi – 110 058. (PAN : AAHPW6887G) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Sameer Kapoor, CA REVENUE BY : Shri Om Prakash, Sr. DR Date of Hearing : 09.03.2023 Date of Order : 1403.2023 ORDER These appeals by the assessee are directed against the respective orders of National Faceless Appeal Centre (NFAC) pertaining to the Assessment Years 2018- 19 & 2019-20. 2. Since the issues are common & connect and the appeals were heard together, the same are being disposed off by this common order. 3. For the sake of reference, I am referring to ITA No.181/Del/2023 for AY 2018-19. The grounds of appeal taken by the assessee read as under :- “Whether on law or facts of the case, ld. CIT (A) was justified in upholding the addition of Rs.29,84,060/- made by the Ld. CPC on account of employees contribution u/s 36(1)(va).” ITA Nos.181 & 182/Del./2023 2 3. In this case, the issue relates to disallowance made by the CPC on account of employees’ contributions of PF and ESI u/s 36(1)(va) of the Income-tax Act, 1961 (for short 'the Act'). 4. In this regard, ld. Counsel of the assessee submitted that before the ld. CIT (A), assessee had submitted submissions which have not been considered and ld. CIT (A) has mentioned that no response was given. For this, ld. Counsel of the assessee brought before us evidence of having uploaded the reply and remarks which the ld. CIT (A) has failed to acknowledge. 5. Upon careful consideration, I note that there is no doubt that the issue of employees’ contribution towards PF & ESI is covered against the assessee by the decision of Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. (2022) 143 taxmann.com 178 wherein it has been held that if employee contribution of provident fund and ESI paid beyond due date as specified under the relevant Act then the same has to be added back in the income of the assessee. However, it is also correct and duly acknowledged by the ld. DR of the Revenue that assessee has given submissions before the ld. CIT (A) who ignored the same. Hence, interest of justice demands that the issue may be remitted to ld. CIT (A). Ld. CIT (A) is directed to decide afresh after considering the submissions of the assessee as per law. 6. Our above order applies mutatis mutandis to both the appeals for AYs 2018-19 & 2019-20. 7. In the result, the appeals of the assessee stand allowed for statistical purposes. Order pronounced in the open court on this 14 th day of March, 2023. Sd/- (SHAMIM YAHYA) ACCOUNTANT MEMBER Dated the 14 th day of March, 2023/TS ITA Nos.181 & 182/Del./2023 3 Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(A) 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.