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The case involves Blueberry IT Solutions Consulting LLP appealing against the order of the National Faceless Appeal Centre (NFAC), Delhi, which confirmed the addition of Rs.22,32,650 to the assessee's income for the Assessment Year 2019-20. This addition was initially made by the DCIT, CPC, Bengaluru, on account of employees' contributions to PF and ESI under sections 43B and 36(1)(va) of the Income Tax Act, 1961. The Tribunal noted the Supreme Court's decision in Checkmate Services (P) Ltd. vs. CIT, which favored the Revenue's position on the timing of such contributions. However, the Tribunal also acknowledged the appellant's concern about a possible double addition of the same amounts, which the Assessing Officer was directed to verify.
Appeal details
Counselvise Citation
[2023] 140 COUNSELVISE.COM (IT) 137274 (ITAT-PUNE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 month(s) 23 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
11-06-2023
Appeal Filed By
Assessee
Order Result
PartlyAllowed
Bench Allotted
A
Next Hearing Date
05-06-2023
Assessment Year
2019-2020
Appeal Filed On
19-03-2023
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND Dr. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA No.321/PUN/2023 निर्धारण वषा / Assessment Year : 2019-20 Blueberry IT Solutions Consulting LLP 302, Karan Selene, Bhandarkar Road, Pune – 411004 PAN : AAQFB8146A Vs. The DCIT, Circle 2, Pune Appellant Respondent आदेश / ORDER PER S.S. GODARA, JM : This assessee‟s appeal for AY 2019-20 arises against the National Faceless Appeal Centre (NFAC), Delhi‟s DIN and order No.ITBA/NFAC/S/250/2022-23/1048291800(1), dated 28-12- 2022, in proceedings 250 of the Income Tax Act, 1961, in short „the Act‟. Assessee by Shri Kishor B Phadke Revenue by Shri Ramnath P. Murkunde Date of hearing 06-06-2023 Date of pronouncement 12-06-2023 ITA No.321/PUN/2023 Blueberry IT Solutions Consulting LLP 2 Heard both the parties. Case file perused. 2. The assessee raised the following substantive grounds in the instant appeal: 1. The learned CIT(A) NFAC, Delhi erred in law and on facts in confirming the addition of Rs.22,32,650/- [i.e. Rs. 11,95,529 u/s 43B + Rs. 10,37,125 u/s 36(1)(va)] made by learned DCIT, CPC, Bengaluru on account of employees contribution of P.F and E.S.I u/s 36(1)(va). 2. The appellant contends that learned CIT(A) erred in law and on facts in confirming addition amounting to Rs.11,95,529 u/s 43B without appreciating that, the said disallowance was contrary to the binding judicial precedents / court rulings at the time of processing u/s 143(1). 3. The appellant contends that the learned CIT(A) erred in law and on facts in confirming disallowance of Rs.10,37,125 u/s 36(1)(va) without appreciating that, the appellant has already disallowed the same. 4. Learned I-T authorities erred in making double addition of the subject matter. 5. Learned I-T authorities erred in law and on facts in making disallowance u/s 143(1) of ITA 1961 on the basis of informative disclosure in tax audit report. The I-T authorities ought to have appreciated that, no any such disallowance was indicated in the Tax Audit Report. ITA No.321/PUN/2023 Blueberry IT Solutions Consulting LLP 3 3. Suffice to say, there is hardly any dispute between the parties that the hon‟ble apex court‟s recent landmark decision in Checkmate Services (P) Ltd. vs. CIT (2022) 143 taxmann.com 178 (SC) has settled the issue regarding the disallowance of employee‟s contribution to PF/ESI made u/s 36(1)(va) in Revenue‟s favour. Their lordships hold in their very terms that such contribution ought to be deposited in the specified account on or before the “due” date prescribed under the corresponding statute than the “due” date prescribed u/s 139(1) of the Act. We, thus, see no merit in assessee‟s instant sole substantive grievance. 4. Faced with the situation, Mr. Phadke next invited our attention to assessee‟s paper book running into 100 pages and more particularly, section 143(1) CPC‟s processing dated 06.05.2020. His case in light thereof that it prima facie emerges that this is an instance of double disallowance / addition regarding the above stated ESI/PF amount. The revenue is equally fair in submitting before us that the Assessing Officer will verify the instant ITA No.321/PUN/2023 Blueberry IT Solutions Consulting LLP 4 clinching aspect to this limited extent in consequential proceedings as per law. We ordered accordingly. 5. This assessee‟s appeal is partly allowed for statistical purposes in the above terms. Order pronounced in the Open Court on 12 th June, 2023. Sd/- Sd/- (DIPAK P. RIPOTE) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER प ु णे Pune; ददिधांक Dated : 12 th June, 2023 GCVSR आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: 1. अपीऱधर्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. The concerned Pr.CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे “A” / DR „A‟, ITAT, Pune 5. गार्ड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune ITA No.321/PUN/2023 Blueberry IT Solutions Consulting LLP 5 Date 1. Draft dictated on 06-06-2023 Sr.PS 2. Draft placed before author 07-06-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.
