Airads Limited, New Delhi V. ACIT, Circle-2(1), New Delhi

ITA 2477/DEL/2022

AI Insights

The case involves Airads Limited appealing against the order of the National Faceless Appeal Centre (NFAC), which confirmed disallowances made by the Centralized Processing Centre (CPC) regarding delayed payments of employees' contributions to PF, ESI, and TDS for the assessment year 2020-21. The primary contention was that these payments were made within the statutory due dates, a fact the first appellate authority allegedly did not verify adequately. The Departmental Representative agreed to a restoration of the issue to the Assessing Officer for factual verification.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 300804 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-11-2022
• Assessment Year: 2020-2021
• Appeal Filed On: 05-10-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: TDS
• Section: 43B; 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘SMC’ NEW DELHI SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA No.2477/Del/2022 Assessment Year: 2020-21 Airads Limited., 433, Functional Industrial Estate, Patpar Gan j, Delhi-1100 92 Vs. ACIT, Circle-2(1), New Delhi. PAN :AAACA5793R (Appellant) (Respondent) ORDER This is an appeal by the assessee against order dated 24.09.2022 passed by National Faceless Appeal Centre (NFAC), Delhi pertaining to assessment year 2020-21. 2. The dispute in the present appeal is confined to disallowance of employees contribution to provident fund, employees state insurance (ESI), as well as, disallowance under Section 43B of the Act in respect of payment of TDS. 3. Briefly the facts are, the assessee is a resident corporate entity. For the assessment year under dispute, the assessee furnished its return Assessee by Shri Vipin Jain, CA Respondent by Shri Toufel Tahir, Sr. DR Date of hearing 24.11.2022 Date of pronouncement 28.12.2022 2 ITA No.2477/Del/2022 of income under Section 139(1) of the Act. While processing the return, the Centralized Processing Centre (CPC) made adjustment to the income by making disallowance under Section 43B of the Act in respect of alleged delayed payment of employees Contribution to PF and ESI and TDS. The additions so made were confirmed by learned Commissioner (Appeals). 4. I have considered rival submissions and perused the material available on record. 5. Before me, learned counsel appearing for the assessee has submitted that all the amounts relating to employees contribution to PF, ESI and TDS were deposited within the due date prescribed under the statue. In this regard, he drew my attention to the details furnished in the paper book. Further, he submitted, due to COVID-19 Pandemic Limitation Period was extended. He submitted, the facts brought on record were not at all considered by the first appellate authority in faceless proceedings. Thus, he submitted, let the Assessing Officer factually verify assessee’s claim and decide the issue. 6. Learned Departmental Representative fairly agreed for restoration of the issue to the Assessing Officer. 3 ITA No.2477/Del/2022 7. I have considered rival submissions and perused the material available on record. 8. Undisputedly, the CPC, while processing the return of the assessee has made certain adjustments to the income of the assessee on account of alleged late payment of employees contributions to the PF, ESI as well as TDS. The additions so made have been confirmed by the first appellate authority. 9. However, before me, it is the specific case of the assessee that employees contribution to PF and ESI as well as TDS payments were remitted to the government account as per the due date under the statute. In this context, the assessee has furnished the necessary details. It appears, the issues relating to adjustment made by the CPC have not been properly verified by the first appellate authority in faceless proceedings. From the details furnished, prima facie, it appears that the assessee had made remittances within the due date prescribed under the statute. However, since, the facts relating to the disallowances have not been verified properly, I direct the Assessing Officer to factually verify the details of remittances made by the assessee in respect of employees contributions to PF, ESI as well as 4 ITA No.2477/Del/2022 payment of TDS and delete the additions, in case, it is found that such remittances and payments have been made within the due date. 10. Needless to mention, the assessee must be given a fair opportunity of being heard before deciding the issue. Grounds are allowed for statistical purposes. 11. In the result, the appeal is allowed for statistical purposes. Order pronounced in the open court on December, 2022. (SAKTIJIT DEY) Dated: December,2022 JUDICIAL MEMBER Mohan Lal Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi