Unnikrishna Pillai, Jagadhri V. ITO, Ward 5, Yamuna Nagar

ITA 209/CHANDI/2023

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The case involves Shri Unnikrishna Pillai, the proprietor of Krishna Engineering, who appealed against the order of the Commissioner of Income Tax (Appeals) NFAC, Delhi. The appeal was related to the disallowance made by the lower authorities on account of delayed deposits of both employee's and employer's contributions to ESI/PF for the assessment year 2018-19. The main legal contention was whether the disallowance was justified under the provisions of Section 43B of the Income Tax Act, particularly in light of the Supreme Court's decision in Checkmate Services P. Ltd. & Ors. Vs. CIT & Ors, which clarified the due dates for deposit under welfare enactments.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127864 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 16-07-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 12-04-2023
• Other Referred Cases: Checkmate Services P. Ltd. & Ors. Vs. CIT & Ors (2022) 448 ITR 518 (S.C)
• Laws Referred To: Income Tax Act, ESI/PF Welfare Enactments
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43B

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, “A” CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ITA No 209/CHD/2023 नधा रण वष / Assessment Year : 2018-19 Shri Unnikrishna Pillai, Prop. Krishna Engineering, 159, Manakpur, Industrial Area, Jagadhri. Vs The ITO, Ward-5, Yamuna Nagar. थायीलेखासं./PAN NO: AKBPP7700R अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by: Shri Ajay Jain, CA राज व क ओर से/ Revenue by : Shri Manveet Singh Sehgal, Sr.DR स ु नवाई क तार"ख/Date of Hearing : 17.07.2023 उदघोषणा क तार"ख/Date of Pronouncement : 18.07.2023 आदेश/Order Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the ld. Commissioner of Income Tax (Appeals) NFAC, Delhi [hereinafter referred to as ‘ld.CIT(A)’] dated 15.02.2023. 2. The assessee in this appeal is aggrieved by the action of the lower authorities in making disallowance on account of delayed deposits of employee’s contribution and employer’s ITA No.209/CHD/2023 A.Y. 2018-19 Page 2 of 3 contribution to ESI/PF. 3. At the outset, ld. Counsel for the assessee has submitted that so far as the issue relating to the disallowance on account of late deposit of employee’s contribution to EPF/ESI is concerned, the issue is squarely covered by the decision of the Hon'ble Supreme Court in the case of Checkmate Services P. Ltd. & Ors. Vs. CIT & Ors (2022) 448 ITR 518 (S.C) wherein the Hon'ble Supreme Court has held that the due date of deposit for employees’ contribution to PF/ESI will be the due date as prescribed in the respective welfare enactments, irrespective of the fact that the amount was deposited before due date of filing of return of income. That provisions of Section 43B are not applicable in respect of deposit of employees contribution to ESI/PF. However, the ld. Counsel for the assessee has submitted that so far as the employer’s contribution is concerned, the same was deposited before the due date of filing of return of income and that the disallowance was not attributed in case of employer’s contribution to ESI/PF as per provisions of Section 43B of the Income Tax Act. 4. In view of above submissions of the ld. Counsel for the assessee, the matter is restored to the file of the AO with direction to examine the above contention and if the employer’s contribution is deposited before the due date of filing of the ITA No.209/CHD/2023 A.Y. 2018-19 Page 3 of 3 return, the same be allowed to the assessee as a deduction. 5. In the result, appeal is treated as partly allowed for statistical purposes. Order pronounced in the Open Court on 18 th July,2023. Sd/- ( VIKRAM SINGH YADAV) लेखा सद य/ Accountant Member Sd/- ( SANJAY GARG) या यक सद य/ Judicial Member “Poonam.” आदेशक त(ल)पअ*े)षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु +त/ CIT 4. आयकरआय ु +त (अपील)/ The CIT(A) 5. )वभागीय त न.ध, आयकरअपील"यआ.धकरण, च0डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar