Unique Shell Mould (India) P Ltd, Coimbatore V. CIT(A),NFAC, Delhi

ITA 618/CHNY/2021

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The case involves Unique Shell Mould (India) Pvt. Ltd., the appellant, contesting the decisions made by the Income Tax Officer and upheld by the CIT(A), regarding two main issues: the disallowance of payments for belated remittance of employees' contributions to PF and ESI, and the disallowance of a deduction claim under section 80IA of the Income Tax Act due to the late filing of the tax return. The Tribunal confirmed the disallowance related to PF and ESI contributions based on Supreme Court precedent but remanded the issue of the 80IA deduction back to the CIT(A) pending a decision from the CBDT on a condonation of delay application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135255 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 30-01-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 28-12-2021
• Other Referred Cases: Checkmate Services P. Ltd. vs. Revenue
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside

Judgement Text

आयकर अपीलीय अिधकरण, ‘सी’ ᭠यायपीठ,चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ᮰ी महावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मनोज कुमार अᮕवाल, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपीलसं./ITA No.: 618/CHNY/2021 िनधाᭅरण वषᭅ/Assessment Year: 2019-20 Unique Shell Mould (India) Pvt. Ltd., 89, Private Industrial Estate, Pollachi Main Road, SIDCO, Coimbatore – 641 021. PAN: AAACU 5173B vs. The Income Tax Officer, Corporate Circle 1, Coimbatore. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri N. Vijay Kumar, CA ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri M. Rajan, CIT & Ms. Jancy Elizabeth, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 31.01.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 10.02.2023 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi in Appeal No. CIT(A), Coimbatore-1/10010/2020-21 dated 30.10.2021. The return of income was processed by the CPC, Bangalore by issuing intimation u/s.143(1) of the Income Tax Act, 2 ITA No. 618/Chny/2021 1961 (hereinafter the ‘Act’) for the relevant assessment year 2019- 20 vide order dated 16.05.2020. 2. The first issue in this appeal of assessee is as regards to the order of CIT(A) confirming the disallowance of payments towards belated remittance of employees contribution to PF and ESI amounting to Rs.8,30,703/-. 3. At the outset, the ld.AR for the assessee fairly agreed that the employees contribution to PF & ESI were remitted beyond the due date of respective statutes of PF & ESI Act. Hence, this issue is squarely covered by the decision of Hon’ble Supreme Court in the case of Checkmate Services P. Ltd., in Civil Appeal No.2833 of 2016, order dated 12.10.2022 in favour of Revenue. Since the issue is covered by the decision of Hon’ble Supreme Court, as admitted by assessee, we confirm the order of CIT(A) on this issue. 3. The next issue in this appeal of assessee is as regards to the order of CIT(A) confirming the disallowance of claim of deduction u/s.80IA of the Act amounting to Rs.1,03,31,002/- on the ground that the return of income was not filed within the due date as prescribed under the Act. 3 ITA No. 618/Chny/2021 4. We have heard rival contentions and gone through facts and circumstances of the case. We noted that from the arguments of ld.AR that the CPC, Bangalore has not allowed deduction claimed u/s.80IA of the Act for the reason that there was delay in filing the return of income and once the return is not filed u/s.139(1) of the Act, deduction u/s.80IA of the Act is not allowable. The ld.AR stated that this delay has occurred only due to technical glitch in uploading Form No.10CCB within the time allowed and hence, there is a delay in filing return of income only by 2 days. The ld.AR stated that the CBDT has issued a circular for condonation of delay and assessee in this year has moved application for condonation of delay with CBDT and CIT(A) should have awaited the decision of CBDT and in case, delay is condoned by CBDT the deduction u/s.80IA is to be allowed. When this fact was confronted to ld. Senior DR, he agreed that the assessee has moved petition with CBDT for condonation of delay in filing of return of income and the matter can be referred back to the file of the CIT(A) for adjudication after the decision taken by CBDT. 5.1 In view of the above facts, we set aside the order of CIT(A) and remand this issue of claim of deduction u/s.80IA of the Act to the file of the CIT(A) who will await the decision of CBDT in regard to condonation petition filed by assessee before CBDT. In term of 4 ITA No. 618/Chny/2021 the above, this issue of assessee’s appeal is allowed for statistical purposes and matter remanded back to the file of the CIT(A). 6. In the result, the appeal filed by the assessee is partly-allowed for statistical purposes. Order pronounced in the open court on 10 th February, 2023 at Chennai. Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य/ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 10 th February, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ (अपील)/CIT(A) 4. आयकर आयुᲦ /CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF.