DCIT., Circle-8(1), Hyderabad V. Deloitte Tax Services India Private Limited, Hyderabad

ITA 672/Hyd/2022

AI Insights

The case involves an appeal by the Revenue against the order of the learned CIT (A) NFAC, which allowed the deduction of Rs.1,84,40,473/- for delayed remittance of employee's contribution to PF & ESI by Deloitte Tax Services India Private Limited. The Revenue contended that the CIT (A) erred in allowing the deduction despite specific provisions under the Income Tax Act u/s 36(1)(va) which disallows such claims. The Tribunal, referencing a Supreme Court decision, reversed the CIT (A)'s decision, emphasizing that deductions for such contributions are only permissible if remitted within the statutory due dates.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128924 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 05-03-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 30-11-2022
• Other Referred Cases: Checkmate Services (P) Ltd
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B; 143(1)

Judgement Text

ITA 672 of 2022 Deloitte Tax Services India P Ltd Page 1 of 3 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad Before Shri R.K. Panda, Accountant Member AND Shri Laliet Kumar, Judicial Member ITA No.672/Hyd/2022 Assessment Year: 2019-20 Dy. C.I.T. Circle 8(1) Hyderabad Vs. Deloitte Tax Services India Private Limited Hyderabad PAN:AABCD9771F (Appellant) PAN: (Respondent) Assessee by : N o n e Revenue by: Shri KPRR Murthy, DR Date of hearing: 06/03/2023 Date of pronouncement: 07/03/2023 ORDER Per Laliet Kumar, J.M This appeal filed by the Revenue is directed against the order dated 21.09.2022 of the learned CIT (A)-NFAC, relating to A.Y.2019-20. 2. None appeared on behalf of the assessee. 3. The only ground raised by the Revenue read as under: “Whether on the facts and circumstances of the case, the learned CIT (A) was justified in holding that the delayed remittance of employee’s contribution towards PF/ESI is allowable u/s 43B inspite of specific provisions of the Income Tax Act u/s 36(1)(va) providing for disallowance of the same”. 4. Facts of the case, in brief, are that the assessee is a company, filed its return of income declaring total income at ITA 672 of 2022 Deloitte Tax Services India P Ltd Page 2 of 3 Rs.1,51,27,53,750/- and paid taxes of Rs.57,98,51,165/- resulting a refund of Rs.5,12,34,500/-. The CPC Bengaluru issued an intimation u/s 143(1) of the Act on 9/6/20020 disallowing the payment of employee’s contribution to provident fund amounting to Rs.1,84,40,473/- on the ground that it is after the due date as per the relevant act but before the filing of the return of income. The Assessing Officer granted refund of Rs.4,47,90,657/- as against the refund of Rs.5,12,34,500 claimed in the return of income. 5. In appeal, the learned CIT (A) NFAC allowed the appeal of the assessee by disallowing the amount of Rs1,84,40,473/- made by the CPC Bengaluru. 6. We have heard the rival arguments and perused the record. We find the learned CIT (A) NFAC deleted the addition on the ground that the assessee has remitted such amount to the PF & ESI contribution before the due date of filing of the return. We find the issue stands decided against the assessee by the decision of the Hon'ble Supreme Court in Checkmate Services (P) Ltd (Supra) where it has been held that the employee’s contribution to PF & ESI, if not remitted before the due date prescribed in the respective enactments, cannot be allowed as a deduction. Therefore, the order of the learned CIT (A) NFAC to this extent is contrary to law as laid down by the Hon'ble Supreme Court and therefore, has to be reversed. We hold and direct accordingly. The only ground raised by the Revenue is accordingly allowed for statistical purposes. 7. In the result, appeal filed by the Revenue is allowed for statistical purposes. ITA 672 of 2022 Deloitte Tax Services India P Ltd Page 3 of 3 Order pronounced in the Open Court on 7 th March, 2023. Sd/- Sd/- (R.K. PANDA) ACCOUNTANT MEMBER (LALIET KUMAR) JUDICIAL MEMBER Hyderabad, dated 7 th March, 2023. Vinodan/sps Copy to: S.No Addresses 1 Dy.CIT, Circle 8(1) 9 th Floor, Room No.914,Signature Towers, Hyderabad 500084 2 M/s. Deloitte Tax Services India (P) Ltd. Floor No.10, Deloitte Tower I, Survey No.41, Gachibowli, Hyderabad 500032, R.R. Distt. 3 CIT - Hyderabad 4 Pr. CIT-, Hyderabad 5 DR, ITAT Hyderabad Benches 6 Guard File By Order