Universal Offset, Noida V. ACIT Circle 5(3)(1), Noida

ITA 2149/DEL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 9106 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 16-01-2024
• Assessment Year: 2019-2020
• Appeal Filed On: 26-07-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B; 143(1); 139(1)

Judgement Text

ITA No.- 2149/Del/2023 Universal Offset Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘H’: NEW DELHI) BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No:- 2149/DEL/2023 (Assessment Year: 2019-20) Universal Offset, Noida. Vs. Assistant Commissioner of Income Tax, Circle 5(3) (1), Noida. APPELLANT RESPONDENT PAN No: AAAFU1231D Assessee By : None Revenue By : Ms. Maimun Alam, Sr. DR Date of Hearing : 17.01.2024 Date of Pronouncement : 19.01.2024 ORDER PER SHAMIM YAHYA, A.M. This appeal by the Assessee is directed against the order passed by the Learned Commissioner of Income Tax (Appeals)/ NFAC, New Delhi, dated 23.05.2023 and pertains to Assessment Year 2019-20. 2. Brief facts of the case are that the appellant is a partnership firm and derives its income from the business of offsets printing and publishing. The appellant filed its return of income (ITR) for the A.Y. 2019-20 on 22.10.2019 declaring total income of ITA No.- 2149/Del/2023 Universal Offset Page 2 of 4 Rs.1,05,32,300/-. The return of the appellant was processed by AO,CPC and intimation u/s 143(1) of the Act was passed on 06.05.2020 making adjustment of Rs.2,30,514/- u/s 43B for "GST liability not paid before due date of filing ITR" and Rs. 20,08,374/- towards belated remittance of employees' contribution to PF and ESI respectively. 4. Upon the assessee’s appeal, the Ld. CIT(A) granted relief on the issue of GST. However, on the issue of PF and ESI payments, the Ld. CIT(A) confirmed the disallowance by elaborately discussing and finally concluding as under: “7.2.11 In view of the above discussions keeping in mind the various decisions of the High Courts and Supreme Court, and in light of the newly amended provision of Explanation 5 in Section 43B, and amended clause (va) of Section 36(1), it is held the deposit of the Employees Provident Fund Contribution was never intended to be covered by the provisions of Section 43B, but was always intended to be covered by the provisions of Section 36(1)(va). Hence the deduction for the Employee's contribution to the EPF/ESI/PF etc. will only be available if the amount is deposited before the date as specified in Section 36(1)(va) and not the due date for filing of Return u/s 139(1) of the I.T. Act as per Section 43B. The disallowance of Rs.20,08,374/- is therefore, upheld and the appellant's appeal is accordingly dismissed on this issue. 5. Against this order, the assessee filed an appeal before the ITAT. 6. We have heard the Ld. DR. None appeared on behalf of the assessee. Ld. DR submitted that the issue is now squarely covered and against the assessee by the decision of Hon’ble Supreme Court in the case of Check Mate Services Private Limited 448 ITR 518. 7. In this case, Hon’ble Apex Court categorically held that PF-ESI payment done beyond the specified date, in the respective Acts should be disallowed and added to the ITA No.- 2149/Del/2023 Universal Offset Page 3 of 4 income of the assessee. Respectfully following the precedent mentioned above, we uphold the orders of the authorities below. 8. In the result, appeal of the assessee is dismissed. Order Pronounced in the Open Court on 19.01.2024 Sd/- Sd/- (ANUBHAV SHARMA) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 19 /01/2024 (Pooja) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA No.- 2149/Del/2023 Universal Offset Page 4 of 4 Date of dictation 17.01.24 Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order