M/S EDAC ENGINEERING LIMITED, CHENNAI V. ADIT,CPC, BENGALURU

ITA 68/CHNY/2023

AI Insights

The case involves M/s. EDAC Engineering 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, by the ADIT, CPC, Bengaluru, disallowing a deduction of Rs.2,47,93,000 for employees' contributions to PF & ESI, which were not deposited within the due dates prescribed by the respective statutes. The CIT(A) upheld the disallowance, referencing the Supreme Court's decision in M/s. Checkmate Services P. Ltd. Vs. CIT. The Tribunal, after hearing the Senior Departmental Representative and reviewing the facts, dismissed the appeal, agreeing with the lower authorities' decisions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127458 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 27-03-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 18-01-2023
• Other Referred Cases: M/s. Checkmate Services P.Ltd Vs. CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

आयकर अपील य अ धकरण, ‘सी’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ BENCH, CHENNAI ी महावीर संह, उपा य एवं ी जी. मंज ु नाथ, लेखा सद&य के सम BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I. T. A. No. 6 8/ Ch n y/ 2 02 3 ( नधा रणवष / A s s e s sm e nt Yea r : 2 0 1 9- 2 0 ) M/s. EDAC Engineering Ltd. SPIC House, 88, Mount Road, Guindy, Chennai-600 032. V s The ADIT, Centralized Processing Center Bengaluru-560 500. P AN: A AB CS 0 3 2 1 G (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : None यथ क ओरसे/Respondent by : Mr. P.Sajit Kumar, JCIT स ु नवाईक तार ख/D a t e o f h e a r i n g : 28.03.2023 घोषणाक तार ख /D a t e o f P r o n o u n c e m e n t : 28.03.2023 आदेश / O R D E R PER MAHAVIR SINGH, VP: This appeal by the assessee is arising out of order passed by the Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi vide appeal No. ITBA/NFAC/S/250/2022-23 / 1047559141(1) dated 22.11.2022. The assessment was completed by the ADIT., CPC., Bengaluru for the relevant assessment year 2019-20 by intimation u/s.143(1) of the Income Tax Act, 1961 (hereinafter “the Act”) vide order dated 20.05.2020. 2. This appeal was fixed for hearing before the Bench twice, but none represented. When this appeal was fixed for to-day 2 ITA No. 68/Chny/2023 and called for hearing, the assessee filed adjournment petition, seeking adjournment for two weeks. At this, the learned Sr. DR pointed out that this issue before the Bench raised by the assessee is as regards to order of CIT(A) confirming action of the Assessing Officer disallowing payment in respect of employees contribution to PF & ESI, which is covered by the decision of the Hon'ble Supreme Court in the case of M/s. Checkmate Services P.Ltd. Vs. CIT in Civil Appellate jurisdiction Civil Appeal No. 2833 of 2016 dated 13.10.2022. 3. At this point, matter was taken up for hearing. We have heard the ld.Sr.DR and gone through facts and circumstances of the case. 4. Brief facts are that the CPC., Bengaluru processed return u/s.143(1) of the Act on 20.05.2020 and made disallowance being delayed deposit of employees contribution to PF & ESI as is disclosed in the auditors’ report in Form No.3CD amounting to Rs.2,47,93,000/- u/s. 36(1)(va) r.w.s.2(24)(x) of the Act. The Assessing Officer noted that the employees contribution to PF & ESI was paid beyond due date of respective statutes i.e., PF & ESI Acts respectively and 3 ITA No. 68/Chny/2023 therefore, the AO made disallowance of Rs.2,47,93,000/- u/s. 36(1)(va) r.w.s.2(24)(x) of the Act. The CIT(A) following decision of the Hon'ble Supreme Court in the case of M/s. Checkmate Services P.Ltd Vs. CIT (supra), confirmed action of the Assessing Officer. Aggrieved, now the assessee is in appeal before us. 5. We noted that this issue stands concluded by the decision of the Hon'ble Supreme Court in the case of M/s. Checkmate Services P.Ltd Vs. CIT (supra) and admittedly, payments were made beyond due date as prescribed in the respective statutes i.e., PF & ESI Acts. Hence, the Assessing Officer has rightly disallowed and the CIT(A) has rightly confirmed action of the AO. We, therefore, confirm orders of the lower authorities in regard to disallowance of delayed deposit of employees contribution to PF & ESI and dismiss appeal of the assessee. 6. In the result, appeal of the assessee is dismissed. Order pronounced in the open court on 28 th March, 2023 Sd/- Sd/- (जी. मंज ु नाथ ) (महावीर संह) ( G.Manjunatha ) (Mahavir Singh) लेखा सद%य / Accountant Member उपा य / Vice-President चे(नई/Chennai, )दनांक/Date: 28.03.2023 DS 4 ITA No. 68/Chny/2023 आदेश क त+ल,प अ-े,षत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु .त (अपील)/CIT(A) 4. आयकर आय ु .त/CIT 5. ,वभागीय त न2ध/DR 6. गाड फाईल/GF.