The Vallabh Vidyanagar Commercial Co.Op. Bank Ltd., Anand V. The Asstt. Director of Income Tax, CPC, Bengaluru .Present Juridiction The ACIT, Anand Circle, Anand

ITA 53/AHD/2023

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The case involves The Vallabh Vidyanagar Commercial Co.Op. Bank Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal arose from an intimation under section 143(1) of the Income Tax Act, 1961, for the Assessment Year 2019-20, where the bank's income was assessed higher due to disallowance of expenditure claimed under section 36(1)(va) for not depositing employees' contributions to EPF/ESI within due dates. The NFAC dismissed the appeal due to non-explanation of the delay in filing and on merits, following a Supreme Court judgment. The tribunal found merit in the assessee's argument regarding the actual payment dates of the PF contributions and remanded the case for further verification.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114186 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-06-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 23-01-2023
• Other Referred Cases: M/s. Checkmate Services Pvt. Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 154; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri Waseem Ahmed, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member The Vallabh Vidyanagar Commercial Co.Op. Bank Ltd. Shree Vallabh Chambers, Karamsad Road, Mota Bazar, Vallabh Vidyanagar, Gujarat PAN: AAAAT2898Q (Appellant) Vs The ACIT, Anand Circle, Anand (Respondent) Assessee Represented: Shri Karan Shah, A.R. Revenue Represented: Shri Mahesh Parwani, Sr.D.R. Date of hearing : 21-06-2023 Date of pronouncement : 23-06-2023 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the appellate order dated 30.11.2022 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “NFAC”), arising out of the Intimation passed under section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year (A.Y) 2019-20. ITA No. 53/Ahd/2023 Assessment Year 2019-20 I.T.A No. 53/Ahd/2023 A.Y. 2019-20 Page No The Vallabh Vidyanagar Commercial Co.Op. Bank Ltd. vs. ACIT 2 2. The brief facts of the case is that the assessee is a Cooperative Bank filed its Return of Income for the Assessment Year 2019-20 declaring an income of Rs. 2,92,59,500/-. The return was processed u/s. 143(1) dated 06-05-2020 assessing the total income at Rs. 4,29,89,870/- whereby disallowing expenditure claimed u/s. 36(1)(va) of the Act for failure to deposit the employees contribution to EPF/ESI within the due dates. 3. Aggrieved against the intimation, the assessee filed an appeal with the delay of more than 3 months. In the Form No. 35, the assessee has not mentioned delay in filing the appeal and also did not submit any reasons for the delay. As there appears to be no “reasonable cause” for the delay in filing the appeal for more than 3 months, the NFAC dismissed the appeal both on account of non-explanation of the delay as well as on merits following Hon’ble Supreme Court Judgment in the case of M/s. Checkmate Services Pvt. Ltd. 4. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. The Ld. CIT (A) has grossly erred in law and on facts in dismissing the appeal. He ought to have allowed the appeal fully in accordance with the grounds of appeal raised by the appellant before him. 1. Disallowance on account of PF received/deducted from employees and not paid as per the provisions of respective Act - Rs. 13,15,260/- 1. The Ld. CIT (A) has erred in law and on facts in confirming the disallowance of Rs. 13,15,260/- made by the Asstt. Director of Income Tax, CPC, Bengaluru on account of PF received/deducted from employees and not paid as per provisions of respective Act. 2. The Ld. CIT(A) has erred in law and on facts in not properly considering the fact that the amount of PF has been duly paid within the due date and the actual date of payment has been duly mentioned in Form 3CD, but by a bonafide mistake, the actual amount paid was left out to be mentioned in the relevant Column of Form 3CD. I.T.A No. 53/Ahd/2023 A.Y. 2019-20 Page No The Vallabh Vidyanagar Commercial Co.Op. Bank Ltd. vs. ACIT 3 3. The Ld. CIT(A) as well as the Ld. A.O failed to properly consider reply filed by the appellant and the judicial pronouncement relied upon by the appellant. The appellant reserves its right to add, amend, alter or modify any of the grounds stated hereinabove either before or at the time of hearing. 4.1. The assessee further explained as against the intimation passed u/s. 143(1) dated 06-05-2020 a Rectification Petition u/s. 154 was filed by the assessee. The same was disposed against the assessee vide order dated 24-06-2020, thus there is a delay in filing the appeal before the NFAC. However on merits, the NFAC failed to consider the submissions of the assessee and placed before us, the details of payments made by the assessee in respect of the PF amount received from the employees and the date of remittances as follows: SR.NO MONTH EMPLOYEE CONTRIBUTION DATE OF RECEIPT AMOUNT PAID INCLUDING EMPLOYERS CONTRIBUTION ACTUAL DATE OF PAYMENT 1 Apr-18 98,190 27/04/2018 211,313 30/04/2018 2 May-18 98,190 29/05/2018 211,313 01/06/2018 3 Jun-18 103,271 28/06/2018 185,060 30/06/2018 4 Jul-18 116,371 26/07/2018 213,201 26/07/2018 5 Aug-18 106,397 27/08/2018 194,914 28/08/2018 6 Sep-18 106,519 26/09/2018 195,158 27/09/2018 7 Oct-18 132,653 26/10/2018 199,644 30/10/2018 8 Nov-18 109,040 27/11/2018 199,426 28/11/2018 9 Dec-18 109,040 26/12/2018 197,305 27/12/2018 10 Jan-19 109,040 28/01/2019 197,380 29/01/2019 11 Feb-19 109,040 26/02/2019 197,380 26/02/2019 12 Mar-19 117,509 28/03/2019 199,084 29/03/2019 TOTAL 1,315,260 2,402,178 4.2. Thus the Ld. Counsel for the assessee submitted that without verification of the due dates and actual dates of payments, the case was decided against the assessee and one more opportunity be given to the assessee to explain the case by remanding the matter back to I.T.A No. 53/Ahd/2023 A.Y. 2019-20 Page No The Vallabh Vidyanagar Commercial Co.Op. Bank Ltd. vs. ACIT 4 the file of the A.O. for verification of the correct date of payments by the assessee. 5. The Ld. D.R. appearing for the Revenue has no serious objection in remanding the matter back to the file of the A.O. for verification of the dates of payments of the PF amount. 6. Recording the above statements and also to meet the ends of justice, the case is remanded back to the file of the Assessing Officer, whereby the Ld. A.O. should verify the dates of payments and pass order in accordance with law by affording proper opportunity to the assessee. With this observation, the appeal filed by the Assessee is allowed. 7. In the result, the appeal filed by the Assessee is allowed for statistical purposes. Order pronounced in the open court on 23-06-2023 Sd/- Sd/- (WASEEM AHMED) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 23/06/2023 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद