COTTON BLOSSOM (INDIA) PRIVATE LIMITED, TIRUPUR V. ITO, CIRCLE-2, TIRUPPUR

ITA 681/CHNY/2023

AI Insights

The case involves Cotton Blossom (India) Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals) concerning the assessment year 2018-19. The primary issue was the disallowance of employee's contribution to Provident Fund, which was initially added to the assessee's income by the Assessing Officer. The CIT(A) upheld this addition, referencing the Supreme Court's decision in Check Mate Services Pvt. Ltd. v. CIT. The Tribunal, after hearing the Departmental Representative and considering the materials on record, dismissed the appeal, agreeing with the lower authorities and the Supreme Court's precedent.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127943 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 25-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 25-05-2023
• Other Referred Cases: Check Mate Services Pvt. Ltd. v. CIT, Electrical India v. ITO
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

आयकर अपील सं./ITA No.681/Chny/2023 िनधा रण वष /Assessment Year: 2018-19 M/s.Cotton Blossom (India) Pvt. Ltd., Shed No.189, TEKIC Tea Nagar, SIDCO, Mudalipalayam, Tirupur. v. The Income Tax Officer, Circle-2, Tirupur. [PAN: AACCC 5046 R] (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओर से/ Appellant by : None यथ क ओर से /Respondent by : Mr. AR.V.Sreenivasan, Addl.CIT सुनवाई क तारीख/Date of Hearing : 26.06.2023 घोषणा क तारीख /Date of Pronouncement : 26.06.2023 आदेश / O R D E R PER MANJUNATHA.G, AM: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Income Tax Department, National Faceless Appeal Centre (NFAC), Delhi, dated 02.04.2023, and pertains to assessment year 2018-19. 2. The brief facts of the case are that the assessee is engaged in manufacture and export of hosiery garments and filed its return of income for AY 2018-19, declaring total income of Rs.21,41,610/- on 29.09.2018. The return of income filed by the assessee has been processed u/s.143(1) आयकर अपीलीय अिधकरण, ‘ए’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI ी वी. दुगा राव, माननीय ाियक सद एवं ी मंजूनाथा .जी, माननीय लेखा सद के सम BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER ITA No.681/Chny/2023 :: 2 :: of the Income Tax Act, 1961 (in short “the Act"), and determined total income of Rs.2,37,50,200/- after making addition towards disallowance of employee’s contribution to PF u/s.36(1)(va) of r.w.s.43B of the Act, for Rs.2,16,08,590/-. The assessee challenged the additions made by the AO towards disallowance of employee’s contribution to PF u/s.36(1)(va) of the Act, before the Ld.CIT(A). The Ld.CIT(A) for the reasons stated in their appellate order dated 02.04.2023 by following the decision of the Hon’ble Supreme Court in the case of Check Mate Services Pvt. Ltd. v. CIT, reported in [2022] 143 taxmann.com 178 (SC), confirmed the additions made by the AO towards disallowance of employee’s contribution to PF u/s.36(1)(va) of the Act. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before us. 3. None appeared for the assessee, we have heard the Ld.DR and considered the materials available on record and we find that the issue involved in the present appeal is covered against the assessee by the decision of the Hon’ble Supreme Court in the case of Check Mate Services Pvt. Ltd. v. CIT, where it has been held that belated payment of employee’s contribution to PF cannot be allowed as deduction u/s.36(1)(va) of the Act r.w.s.43B of the Act. The ITAT Chennai Benches in the case of Electrical India v. ITO reported in [2023] 147 taxmann.com 470, had considered an identical issue and by following the decision of the Hon’ble Supreme Court in the case of Check Mate Services Pvt. Ltd. v. CIT (supra), had taken a similar view. The Ld.CIT(A) after considering relevant facts has rightly ITA No.681/Chny/2023 :: 3 :: upheld the additions made by the AO towards disallowance of employee’s contribution to PF u/s.36(1)(va) of the Act, and thus, we are inclined to uphold the findings of the Ld.CIT(A), and dismiss the appeal filed by the assessee. 4. In the result, appeal filed by the assessee is dismissed. Order pronounced on the 26 th day of June, 2023, in Chennai. Sd/- ( वी. दुगा राव) (V. DURGA RAO) याियक सद य/JUDICIAL MEMBER Sd/- (मंजूनाथा.जी) ( MANJUNATHA.G) लेखा सद य/ACCOUNTANT MEMBER चे ई/Chennai, दनांक/Dated: 26 th June, 2023. TLN आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ /Appellant 3. आयकर आयु"/CIT 5. गाड फाईल/GF 2. यथ /Respondent 4. िवभागीय ितिनिध/DR