Krown Bakers (India) Pvt. Ltd., New Delhi V. ITO,Ward-14(4), New Delhi

ITA 2617/DEL/2022

AI Insights

The case involves M/s. Krown Bakers (India) Pvt. Ltd., the appellant, contesting the disallowance of deductions for delayed payments of employees' contributions to PF and ESI for the assessment year 2019-20. The Centralized Processing Centre (CPC) initially disallowed these deductions, which was upheld by the first appellate authority. The main legal contention was whether the deductions could be allowed if the payments were made before the due date of filing the income tax return, despite being delayed beyond the statutory deadlines. The Tribunal, referencing a Supreme Court decision, ruled against the appellant, affirming the disallowance.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300521 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 08-05-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 30-10-2022
• Other Referred Cases: Checkmate Services Pvt. Ltd. Vs CIT- I (CIVIL APPEAL No. 2833 of 2016 and Ors., dated 12th October, 2022)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘C’ NEW DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.2617/Del/2022 Assessment Year: 2019-20 M/s. Krown Bakers (India) Pvt. Ltd., L-108-109, Lajpat Nagar-2, New Delhi Vs. Income Tax Officer, Ward-14(4), New Delhi PAN :AADCK3283B (Appellant) (Respondent) ORDER PER SAKTIJIT DEY, JM: This is an appeal by the assessee against order dated 14.10.2022 passed by the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2019-20. 2. When the appeal was called for hearing, none appeared on behalf of the assessee to represent the case, despite issuance of notice of hearing. Considering the nature of dispute, we proceed to dispose of the appeal ex parte qua the assessee after hearing Appellant by None Respondent by Sh. Anuj Garg, Sr. DR Date of hearing 09.05.2023 Date of pronouncement 16.05.2023 ITA No.2617/Del/2022 AY: 2019-20 2 | P a g e learned Departmental Representative and based on facts and materials on record. 3. The dispute in the present appeal is confined to disallowance of deduction claimed on account of delayed payment of employees contribution to Provident Fund (PF) and Employees’ State Insurance (ESI). While processing the return of income filed by the assessee for the impugned assessment year, the Centralized Procession Centre (CPC), having found that employees contribution to PE and ESI were not paid within due date prescribed under the relevant statutes governing such payments in terms of section 36(1)(va) of the Income-tax Act, 1961 (for short ‘the Act’), made adjustment by adding back to the income of the assessee. Though, the assessee filed an application under section 154 of the Act for rectification, however, the same was dismissed by the CPC. Being aggrieved, assessee filed an appeal before the first appellate authority. By the impugned order, the first appellate authority dismissed the appeal by sustaining the addition made by the CPC. 4. There is no dispute that the assessee has not paid employees’ contribution to PF and ESI within the time limit prescribed under the relevant statutes. It is the case of the ITA No.2617/Del/2022 AY: 2019-20 3 | P a g e assessee that the deduction should be allowed as the payment has been made before the due date of filing of return under section 139(1) of the Act. In our view, the aforesaid claim of the assessee is not acceptable, as now the issue stands decided against the assessee by the Hon’ble Supreme Court in case of Checkmate Services Pvt. Ltd. Vs CIT- I (CIVIL APPEAL No. 2833 of 2016 and Ors., dated 12 th October, 2022) 5. In this view of above, we do not find any merit in the ground raised. Accordingly, ground raised is dismissed. 6. In the result, the appeal is dismised. Order pronounced in the open court on 16 th May, 2023 Sd/- Sd/- (M. BALAGANESH) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 16 th May, 2023. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi