Kapsons Wordwide, Agra V. Jurisdictional Assessing Officer, Ward-1(1)(1), Agra

ITA 79/AGR/2021

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 6553 (ITAT-AGRA)
• Duration Of Justice: 2 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-10-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 21-09-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, ‘DB’: AGRA (Through Virtual hearing) BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.79/AGR/2021 [Assessment Year: 2019-20] Kapsons Worldwide, 43/499, Opp. Suraj Bhan Ki Bagichi, Agra Mathura Road, Agra, Uttar Pradesh-282007 Vs ACIT, Circle-(1)(1), Agra PAN-AATFK1682R Assessee Revenue Assessee by None Revenue by Sh. Shailendra Srivastava, Sr. DR Date of Hearing 10.10.2023 Date of Pronouncement 13.10.2023 ORDER PER SHAMIM YAHYA, AM, This appeal by the assessee is directed against the order of National Faceless Appeal Centre (NFAC), Delhi, dated 30.07.2023 for the Assessment Year 2019-20. 2. The grounds of appeal reads as under:- “1. Learned CIT(A) has erred in affirming order of CPC Bangalore in making addition of Rs.92,676/- towards late deposit of ESI, already deposited prior due date filing ROI. 2. Learned CIT(A) has erred in affirming order of CPC Bangalore making addition of Rs.7,36,860/- towards the deposit of PF, already deposited prior to due filing ROI.” 3. In this case, the CPC Bangalore has made the adjustment on account of late payment of employees contribution to PF and ESI totaling 2 ITA No.79/AGR/2021 to Rs.8,29,736/-. The CPC, Bangalore, in the intimation has mentioned that any sum received from employees as contribution to any provident fund or superannuation or any fund set up under ESI Act or any other fund for the welfare of employees to the extent not credited to the employees account on or before the due date {36(1)(va)} is to be disallowed. 4. Before the ld. CIT(A), the assessee contended that it was a debatable issue and in such circumstances, adjustment is not valid. The assessee further contended that the employees contribution of 8,29,736/- has paid before due date of filing of return of income. However, the Ld. CIT(A) was not convinced, he held as under:- “3.3. I have considered intimation issued by CPC and submission made by appellant. The appellant has not deposited employee’s contribution to ESI & PF of Rs.8,29,736/- within due date prescribed under PF Act and ESI Act. The Hon’ble Gujarat High Court in the case of Gujarat State Road Transport Corporation [2014] 41 taxmann.com 100, as held that employee’s contribution not paid within the due date specified under PF/ESI Act is not to be allowed as per section 36(1)(va). The Finance Act 2021 (No.13 of 2021) has now clarified by inserting explanation in section 36 of the Act to the above effect as under:- (Explanation 2- For the removal of doubts, it is hereby clarified that the provisions of section 43B shall not apply and shall be deemed never to have been applied for the purposes of determining the “due date” under this clause.”). 4. In view of above, the adjustment made by CPC is justified and the appeal is Dismissed.” 5. Against the above order, the assessee is in appeal before us. 6. We have heard the Ld. DR and perused the record. None appeared on behalf of the assessee. Upon careful consideration, we find that this issue has been categorically decided by the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. (2022) 143 taxmann.com 178 3 ITA No.79/AGR/2021 wherein it has been held that if employee contribution of provident fund and ESI paid beyond due date as specified under the relevant Act then the same has to be added back to the income of the assessee. Respectfully following the precedent, we do not find any infirmity in the order of the Ld. CIT(A). Accordingly, we uphold the same. 7. In the result, the appeal of the assessee stands dismissed. Order pronounced in the open court on 13 th October, 2023. Sd/- Sd/- [ANUBHAV SHARMA] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Delhi; Dated: 13.10.2023. f{x~{tÜ f{x~{tÜf{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi