Rajesh Singh, New Delhi V. ITO Ward 62(1), New Delhi

ITA 1885/DEL/2023

AI Insights

The case involves an appeal by Rajesh Singh against the order of the CIT(A), National Faceless Appeal Centre, which disallowed certain contributions made towards PF and ESI for the assessment year 2020-21. The primary contention was that these contributions were disallowed despite being deposited within the statutory time limits prescribed under the PF/ESI Act. The Tribunal, after hearing the arguments and considering the submissions, decided to set aside the CIT(A)'s order and remand the matter back to the AO for a detailed verification of the timing of the deposits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122250 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 08-08-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 21-06-2023
• Laws Referred To: I.T.Act, 1961, PF/ESI Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Period of limitation; Time period of passing order; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “SMC” BENCH: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER ITA No.1885/Del/2023 [Assessment Year : 2020-21] Rajesh Singh, H.No.470, Pocket-L, Sarita Vihar, New Delhi-110076. PAN-ARAPS0115R vs ITO, Ward-62(1), New Delhi. APPELLANT RESPONDENT Appellant by Shri Rishabh Jain, Advocate Respondent by Shri Om Parkash, Sr.DR Date of Hearing 09.08.2023 Date of Pronouncement 11.08.2023 ORDER PER KUL BHARAT, JM : The present appeal filed by the assessee is directed against the order passed by Ld.CIT(A), National faceless Appeal Centre (“NFAC”) dated 26.04.2023 for the assessment year 2020-21. 2. The assessee has raised following grounds of appeal:- 1. “That on the facts and circumstances of the case, the impugned order dated 26.04.2023 passed by the Ld.CIT(A), is bad, illegal and contrary to the provisions of the I.T.Act, 1961. 2. That on the facts and circumstances of the case ldCIT(A), AO (CPC) while passing the impugned order Ld.AO and CIT(A) both have faield to appreciate that Rs.2,43,311/- was deposited with the relevant authority with in the time stipulated under PF/ESI Act.” 3. Ld. Counsel for the assessee contended that the issue involved in this appeal is related to late deposit of contribution towards PF & ESI made by the employees. He submitted that the lower authorities have disallowed even such Page | 2 contributions that were deposited during the limitation prescribed under relevant Acts. Hence, the Assessing Officer (“AO”) should have allowed such deposits. 4. On the other hand, Ld. Sr. DR opposed these submissions and supported the orders of the authorities below. He fairly conceded that matter may be restored to the AO for verification of correctness of the claim of the assessee regarding such deposits that were made within time as prescribed under relevant law. 5. I have heard Ld. Authorized Representatives of the parties and perused the material available on record. Looking to the facts of the present case and the specific averment made at bar that certain deposits were made during the limitation period. Hence, looking to the totality of the facts, I hereby set aside the impugned order and restore the issue to the Assessing Authority to verify the correctness of the claim of the assessee and decide it afresh in accordance with law. If the AO finds that the employee’s contribution towards PF & ESI was deposited within period prescribed under the relevant Act, the AO would allow the claim of the assessee. Hence, the grounds raised by the assessee are allowed for statistical purposes in terms indicated herein above. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 11 th August, 2023. Sd/- (KUL BHARAT) JUDICIAL MEMBER * Amit Kumar * Page | 3 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI