Raj Trimurti Infra Projects Pvt. Ltd., Kolkata V. I.T.O., Ward - 2(1), Kolkata, Kolkata

ITA 750/KOL/2022

AI Insights

The case involves Raj Trimurti Infra Projects Pvt. Limited, the appellant, contesting an order from the Commissioner of Income Tax (Appeals) which upheld an addition of Rs. 33,88,284 to the assessee's income. This addition was initially made by the Assessing Officer due to the non-deposit of employees' PF and ESI contributions within the statutory due dates. The legal contention centered around the interpretation and application of section 36(1)(va) of the Income Tax Act, which pertains to the deductibility of such contributions. The Tribunal referenced a Supreme Court decision in Checkmate Services Pvt. Limited vs. CIT, which set a precedent that contributions not deposited within the due dates are not deductible.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129146 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 04-07-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 19-12-2022
• Other Referred Cases: Checkmate Services Pvt. Limited \/vs.\- CIT (2022) 143 taxman.com 178 (SC)
• Laws Referred To: P.F. and ESI Acts, section 36(1)(va)
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

ITA No. 750/KOL/2022 Assessment Year : 2018-2019 Raj Trimurti Infra Projects Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President & Shri Rajesh Kumar, Accountant Member I.T.A. No. 750/KOL/2022 Assessment Year: 2018-2019 Raj Trimurti Infra Projects Pvt. Limited,.....Appellant 47J, Ground Floor, Selimpur Lane, Kolkata-700031 [PAN: AAGCM6646R] -Vs.- Income Tax Officer,.................................Respondent Ward-2(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Sunil Surana, F.C.A., appeared on behalf of the assesseee Smt. Ranu Biswas, Addl. CIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing : July 05, 2023 Date of pronouncing the order : July 06, 2023 O R D E R Per Shri Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 24 th November, 2022 passed for A.Y. 2018-19. ITA No. 750/KOL/2022 Assessment Year : 2018-2019 Raj Trimurti Infra Projects Pvt. Limited 2 2. The solitary grievance of the assessee is that the ld. CIT(Appeals) has erred in confirming the action of the ld. Assessing Officer vide which an addition of Rs.33,88,284/- was made by him. According to the information available on the record, the assessee failed to deposit P.F. and ESI contributions of the employees to the respective Act within the due date provided under P.F. and ESI Acts. The ld. Assessing Officer made the disallowance with the help of section 36(1)(va). 3. Against this order of the ld. Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(Appeals). The ld. 1 st Appellate Authority has observed that the issue in dispute is covered by the decision of the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Limited –vs.- CIT (2022) 143 taxman.com 178 (SC) rendered on 12.10.2022. The Hon’ble Supreme Court has held that employees contributions deducted by the employer for making payment towards P.F. & ESI Act were not deposited before the due date provided under those Acts, then assessee will not be eligible to claim deduction of such amounts. The assessee failed to deposit those contributions within the due date and the ld. 1 st Appellate Authority has rightly upheld the action of the ld. Assessing Officer. We do not find any merit in this appeal of the assessee, it is dismissed. ITA No. 750/KOL/2022 Assessment Year : 2018-2019 Raj Trimurti Infra Projects Pvt. Limited 3 4. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on July 6, 2023. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President(KZ) Kolkata, the 6 th day of July, 2023 Copies to : (1) Raj Trimurti Infra Projects Pvt. Limited, 47J, Ground Floor, Selimpur Lane, Kolkata-700031 (2) Income Tax Officer, Ward-2(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (4) Commissioner of Income Tax , (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.