Armaan Industries Pvt. Ltd., Surat V. Assessing Officer, Cir. 1(1)(1), Surat

ITA 286/SRT/2023

AI Insights

Armaan Industries Pvt. Ltd. appealed against the order of the National Faceless Appeal Centre/Commissioner of Income Tax (Appeals), which confirmed the disallowance of deductions for the Employee PF contribution under Section 36(1)(va) and the employer's share of PF/ESI contribution under Section 43B, despite the payments being made within the statutory due dates. The Tribunal considered the submissions of both parties, particularly the assessee's claim that all contributions were made on time, and directed the Assessing Officer to verify these claims and allow the deductions if they were indeed paid within the prescribed deadlines.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301560 (ITAT-SURAT)
• Duration Of Justice: 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 24-05-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 25-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH (SMC), SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 286/Srt/2023 (Assessment Year 2020-21) (Physical hearing) Armaan Industries Pvt. Ltd., Plot No. 714, Road No. 7, GIDC, Sachin, Surat. PAN No. AAGCS 8010 H Vs. Circle-1(1)(1) Surat. Appellant/ assessee Respondent/ revenue Assessee represented by Shri Suresh K. Kabra, CA Department represented by Shri Vinod Kumar, Sr. DR Date of Institution of Appeal 26/04/2023 Date of hearing 25/05/2023 Date of pronouncement 30/05/2023 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned National Faceless Appeal Centre, Delhi (NFAC)/Commissioner of Income Tax (Appeals) (in short, the ld. CIT(A)) dated 16/03/2023 for the Assessment Year (AY) 2020-21. The assessee has raised following grounds of appeal: “1. The ld. CIT(A) has erred and was not just and proper on the facts of the case and in law in confirming disallowance of Employee PF contribution u/s 36(1)(va) despite payment within due date as per due date of respective statute. 2. The ld. CIT(A) has erred and was not just and proper on the facts of the case and in law in confirming disallowance of employer’s share of PF/ESI contribution u/s 43B despite payment before due date of filing of return of income. 3. Prayer 3.1 The payment of Rs. 1,18,171/-being in time may be allowed as deduction u/s 36(1)(va). 3.2 The payment of Rs. 1,31,882/- being made before due date of filing the return of income, may be allowed as deduction u/s 43B. 3.3 Personal hearing may be granted. ITA No. 286/Srt/2023 Armaan Industries Pvt. Ltd. Vs Circle1(1)(1) 2 3.4 Any other relief that your honours may deem fir may be granted. 4. The assessee craves leave to add, amend, modify alter or delete any of the grounds at the time of hearing.” 2. At the outset of hearing, the learned Authorised Representative (ld. AR) of the assessee submits that he has a very limited prayer and submits that the Central Processing Centre (CPC) Bangalore, while processing the return of income, disallowed the entire contribution of employees and employer with regard to ESI and PF. The employer’s share was different amount but in Form 3CD by mistake, the amount of employees’ share was mentioned, however, both the items are allowable that made no difference. The ld. AR of the assessee submits that as per payment of ESI & PF for employer as well as employees’ share was made in the time for the month of March, 2020, thus the whole of the amount is allowable under Section 43B as well as 36(1)(va) of the Income Tax Act, 1961, (in short the Act). 3. The CPC disallowed the reported amount of Rs. 1,81,171 + 13,711 i.e. total of Rs. 1,31,882/-, the payment is allowable and may be deleted. The ld. AR of the assessee submits that due date for filing for March, 2020 contribution of employer employee were 15 th May, 2020 and the payment was made on 13/04/2020. The relevant challan has already been placed on record. 4. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue submits that the Assessing Officer may be directed to verify the contention of ld. AR of assessee and allow relief if such payments are made before due date prescribed in the relevant Acts. ITA No. 286/Srt/2023 Armaan Industries Pvt. Ltd. Vs Circle1(1)(1) 3 5. I have considered the submissions of both the parties and considering the fact that the ld. AR of the assessee has claimed that contribution of employer and employee with regard to ESI & PF for the month of March, 2020 was paid within due date, therefore, the Assessing Officer is directed to verify the required details and to allow relief to the assessee. Needless to direct that before passing the order, the Assessing Officer shall grant reasonable opportunity to the assessee and further to allow to file relevant details and copy of voucher. In the result, grounds of appeal raised by the assessee are allowed for statistical purposes. 6. In the result, appeal of the assessee is allowed for statistical purpose. Order announced in open court on 30 th May, 2023. Sd/- (PAWAN SINGH) JUDICIAL MEMBER Surat, Dated:30/05/2023 *Ranjan Copy to: 1. Assessee – 2. Revenue – 3. CIT 4. DR 5. Guard File By order Sr. Private Secretary, ITAT, Surat