M/S. ICON DRUGS PVT. LTD., NAGPUR V. CPC, INCOME TAX OFFICER, WARD3(4), NAGPUR

ITA 68/NAG/2022

AI Insights

The case involves M/s. Icon Drugs Pvt. Ltd., which appealed against the orders of the National Faceless Appeal Centre (NFAC) Delhi, concerning disallowances made under section 143(1) of the Income Tax Act, 1961 for the assessment years 2018-19 and 2019-20. The primary issues in the appeals were the disallowances related to the employees' share of contribution in provident fund and professional tax. The Tribunal examined the applicability of sections 36(1)(va) and 43B of the Act, referencing the Supreme Court's decision in Checkmate Services (P.) Ltd. vs. CIT as a precedent.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 136803 (ITAT-NAGPUR)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 01-11-2022
• Assessment Year: 2018-2019
• Appeal Filed On: 04-02-2022
• Other Referred Cases: Checkmate Services (P.) Ltd. vs. CIT [2022] 143 taxmann.com 178 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(1); 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR – VIRTUAL COURT BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.68 & 69/NAG/2022 िनधाᭅरण वषᭅ / Assessment Years : 2018-19 & 2019-20 M/s. Icon Drugs Pvt. Ltd., 201, Saidarshan Complex, Wardha Road, Vivekanand Nagar, Nagpur- 440015. PAN : AABCI1210L Vs. CPC Jurisdictional A.O. – ITO, Ward- 3(4), Nagpur. Appellant Respondent आदेश / ORDER PER S. S. GODARA, JM: These assessee’s twin appeals for the assessment years 2018-19 and 2019-20 arise against the National Faceless Appeal Centre “NFAC” Delhi’s separate orders dated 22.03.2022 and 26.03.2022 respectively in case no. ITBA/NFAC/S/250/2021- 22/1041224953(1) and ITBA/NFAC/S/250/2021-22/1041666269(1) respectively; in proceedings u/s 143(1) of the Income Tax Act, 1961; in short “the Act”. Heard both the parties. Case files perused. 2. It is noticed at the outset that the assessee’s instant twin appeals raise as many as identical issues each. It first and foremost substantive ground challenges both the learned lower authorities’ Assessee by : Shri R. K. Ganeriwala Revenue by : Shri G. J. Ninawe Date of hearing : 02.11.2022 Date of pronouncement : 27.12.2022 ITA Nos.68 & 69/NAG/2022 2 action disallowing employees share of contribution in provident fund of Rs.69,617/- in A.Y. 2018-19 and Rs.37,344/- in A.Y. 2019-20; respectively. Learned counsel’s sole argument during the course of hearing is that the assessee has credited the same before due date of filing of return of income u/s 139(1) of the Act. This tribunal is of the view in the instant issue is hardly res integra since as hon’ble apex court’s recent landmark decision in Checkmate Services (P.) Ltd. vs. CIT [2022] 143 taxmann.com 178 (SC) has accepted the Revenue’s contention seeking to apply section 36(1)(va) section 43B; as the case may be. I therefore affirm both the learned lower authorities’ action to this effect regarding instant forming limb of section 36(1)(va) disallowance(s). Rejected accordingly. The assessee’s latter appeal ITA No.69/NAG/2022 for A.Y. 2019-20 is dismissed. 3. I next come to the latter issue of professional tax disallowance amounting to Rs.28,700/- in former ITA No.68/NAG/2022 for A.Y. 2018-19. Learned departmental representative could hardly dispute that the assessee had duly credited the same before the due date of filing its section 139(1)’s return as per section 43B(a) read with first provision thereto. And that the same hardly forms subject matter of section 36(1)(va) disallowance as well. The impugned professional tax disallowance of Rs.28,700/- stands deleted. This former appeal ITA Nos.68 & 69/NAG/2022 3 ITA No.68/NAG/2022 for A.Y. 2018-19 is partly accepted in very terms. No other argument or ground has been pressed during the course of hearing. 4. To sum up, the assessee’s former appeal ITA No.68/NAG/2022 is partly allowed and latter appeal ITA No.69/NAG/2022 is dismissed in above terms. A copy of this common order be placed in respective case files. Order pronounced on this 27 th day of December, 2022. Sd/- (S. S. GODARA) JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 27 th December, 2022. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-NFAC, Delhi. 4. The Pr. CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, नागपुर / DR, ITAT, Nagpur. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.