Weather Comfort Engineers Private Limited, New Delhi V. CPC ITD, Bengaluru

ITA 959/DEL/2021

AI Insights

The case involves Weather Comfort Engineers Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal arose from an intimation passed under section 143(1) of the Income Tax Act, 1961, concerning the Assessment Year 2018-19. The primary issue was the disallowance of employees' contributions to Provident Fund/ESIC, which were added to the returned income due to late deposit. The Tribunal, after considering the precedents and the absence of the appellant at the hearing, dismissed the appeal, supporting the Revenue's stance on the taxability of belated employees' contributions under sections 2(24)(x) and 43B of the Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121728 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 08-02-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 10-08-2021
• Other Referred Cases: Checkmate Services (P.) Ltd. vs CIT, Cemetile Industries vs ITO, Savleen Kaur & Others vs ITO, BT Data and Surveying Services India Pvt. Ltd. vs ITO
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H” DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.959/DEL/2021 Assessment Year 2018-19 Weather Comfort Engineers Private Limited,, K-30, Lajpat Nagar-2, New Delhi. Vs. ADIT-CPC, Bengaluru. TAN/PAN: AAACW2896F (Appellant) (Respondent) Appellant by: None Respondent by: Shri R.K. Jain, Sr.DR Date of hearing: 09 02 2023 Date of pronouncement: 15 02 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (“NFAC”), Delhi dated 21.06.2021 arising from intimation dated 16.10.2019 passed u/s 143(1) of the Income Tax Act, 1961 (“the Act”) concerning Assessment Year 2018-19. 2. As per grounds of appeal, the assessee has challenged the disallowance of employees contribution to Provident Fund/ESIC u/s 36(i)(va) r.w.s. 43B of the Act. When the matter was called for hearing, none appeared for the assessee. It was seen that opportunities have been given in the past for compliance. However, none appeared on behalf of the assessee. Under these circumstances, we are constraint to proceed ex-parte in the absence of the assessee. I.T.A. No.959/Del/2021 2 3. The Ld. Sr.DR for the Revenue on its part, contended that Central Processing Centre (“CPC”) has made additions of Rs. 1,94,016/- to the returned income of the assessee on account of late deposit of employees contribution to Provident Fund/ESIC deferred while processing the return of income. In this regard, the action of the Revenue in making disallowance towards late deposit of employees contribution to Provident Fund/ESIC was supported by the judgement rendered in the case of Checkmate Services (P.) Ltd. vs CIT (2022) 143 taxmann.com 178 (SC). Ld. Sr. DR for the Revenue thus submitted that even for Assessment Years prior to Assessment Year 2021-22, belated deposit of employees contribution held in Trust by the employee Assessee are to be reckoned as taxable income of the assessee u/s. 2(24)(x) r.w. Section 43B of the Act and the deduction u/s 36(i)(va) of the Act would not be permissible thereon in case of belated payments. Ld. Sr.DR for the Revenue further contended that the delayed deposit of employees contribution indicated in the Audit Report is sufficient for adjustment under section 143(1) of the Act, as held by the Pune Bench of the Tribunal in the case of Cemetile Industries vs ITO TS-933-ITAT-2022 (Pune). 4. The issue towards taxability of belated employees contribution to Provident Fund/ESIC is no longer res integra in the light of the judgement of the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. vs CIT (supra). The co-ordinate Bench of the Tribunal in Cemetile Industries vs ITO (supra) had expressed a view that such adjustment/disallowance is also permissible in the proceedings carried out u/s 143(1) of the Act. Very recently, the Co-ordinate Bench of the Tribunal in Savleen Kaur & Others vs ITO in ITA No.2249/Del/2022 & Others for Assessment Year 2018-19 & Others vide order dated 09.01.2023 and in BT Data and Surveying Services India Pvt. Ltd. vs. ITO in ITA No.1658/Del/2021 for Asy 2018-19 vide order dated 07.02.2023 has also taken a similar view and upheld the action of the Revenue. In parity with the view taken by Co-ordinate Benches, we do not see I.T.A. No.959/Del/2021 3 any merit in the appeal of the assessee. We thus, do not see any warrant to any reason to interfere with the order of Ld.CIT(A). 5. In the result, the appeal of the assessee is dismissed ex-parte. Order pronounced in the open Court on 15/02/2023. Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /02/2023 Prabhat