Signature Services Syndicate, Delhi V. ITO Ward-20(4), Delhi

ITA 2522/DEL/2022

AI Insights

The case involves Signature Services Syndicate, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Centre, Delhi, concerning the assessment year 2018-19. The appeal was initially delayed due to the death of the assessee's Chartered Accountant, which was later condoned by the tribunal. The core issue in the appeal was the disallowance of certain Provident Fund contributions by the tax authorities, which were considered delayed based on an audit report. The tribunal found that the facts regarding the deposits were not adequately considered in the impugned orders and thus restored the matter to the AO for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 112782 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 09-10-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 12-10-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay
• Section: 143(1)

Judgement Text

1 ITA no. 2522/Del/2022 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 2522 /DEL/2022 A.Y. 2018-19 Signature Services Syndicate, D-386, Pul Pehladpur, Surajkund Road, New Delhi-110044. PAN- ABCFS7410B Vs Income-tax Officer, Ward-20(4), New Delhi. APPELLANT RESPONDENT Assessee represented by Sh. Anil Kukreja, Adv. Department represented by Sh. Anuj Garg, Sr. DR Date of hearing 10.10.2023 Date of pronouncement 16.10.2023 O R D E R PER ANUBHAV SHARMA, JM: The assessee has come in appeal against the order dated 01.10.2021, for the assessment year 2018-19, passed by the Commissioner of Income Tax (Appeals), National Faceless Centre (NFAC), Delhi (hereinafter referred as “learned First 2 ITA no. 2522/Del/2022 Appellate Authority” or in short “FAA”), in appeal no. CIT(A), Delhi- 10/10029/2020-21, arising out of order dated 18.03.2020 u/s 143(1) of the Income- tax Act, 1961 (hereinafter referred as the “Act”), passed by the ADIT, CPC Bengaluru. 2. Heard and perused the record. 3. The assessee has filed the appeal with delay, as reported by the Registry, of 317 days for which an application has been filed for condonation of the delay, supported by an affidavit. It was pointed out by learned AR that due to the death of the CA, who was representing the assessee before the learned first appellate authority, the matter was lost track and subsequently when new CA was appointed then after discovering the pass-ward etc., came to know of the order passed. The facts narrated and supported with affidavit, justify allowing the application seeking condonation of delay and accordingly ordered. 4. At the time of hearing on the merits of the issue it was pointed out by the learned AR that amounts were deposited before the due date but due to certain observations of the auditors in audit report, relying certain wrong facts, the deposits were considered to be delayed and disallowed by the learned tax authorities u/s 36(1)(va) of the Act. It is pertinent to mention that following facts about the deposits have been provided to us. 3 ITA no. 2522/Del/2022 Provident Fund Contribution Sr. Np. Month Employee’s Contribution Total Due Due date Employee’s share deposited before due date Employee’s share deposited after due date 1 Apr-17 4,58,837.0 4,58,837.0 15-May-17 3,73,356 85,481 2 May-17 3,93,341.4 3,93,341.4 15-Jun-17 2,75,285 1,18,056 3 Jun-17 4,21,996.0 4,21,996.0 15-Jul-17 3,75,373 46,623 4 Jul-17 4,48,491.0 4,48,491.0 15-Aug-17 3,96,201 52,290 5 Aug-17 4,58,879.0 4,58,879.0 15-Sep-17 4,27,407 31,472 6 Sep-17 5,00,061.0 5,00,061.0 15-Oct-17 3,41,576 1,58,485 7 Oct-17 5,17,630.0 5,17,630.0 15-Nov-17 4,57,221 60,409 8 Nov-17 5,08,562.0 5,08,562.0 15-Dec-17 4,64,069 44,493 9 Dec-17 5,30,444.0 5,30,444.0 15-Jan-18 4,85,176 45,268 10 Jan-18 5,21,157.0 5,21,157.0 15-Feb-18 4,68,813 52,344 11 Feb-18 5,11,367.0 5,11,367.0 15-Mar-18 4,49,124 62,243 12 Mar-18 5,13,.043.0 5,13,043.0 15-Apr-18 4,19,066 93,977 Total 57,83,808 57,83,808 49,32,667 8,51,141 5.1 We are of considered view that aforesaid facts not appearing from impugned orders require verification. Accordingly, ground no. 1 is allowed for statistical purposes and so is the appeal. Issue, on merits, is restored to the file of learned AO to take into consideration the particulars of month-wise deposits of the contribution provided by the assessee and decide the issue afresh. Order pronounced in open court on 16.10.2023. Sd/- Sd/- (M. BALAGANESH ) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* 4 ITA no. 2522/Del/2022 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI