ITO, NON COP WARD-15(1), CHENNAI V. ANJAPPAR CHETTINAD RESTAURANT ADAYAR, CHENNAI

MA 141/CHNY/2022

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The case involves the Income Tax Department (Revenue) seeking a recall/modification of a Tribunal order concerning the disallowance of late payment of ESI/PF contributions by M/s. Anjappar Chettinad Restaurant for the assessment year 2018-19. Initially, the Tribunal had deleted the disallowance, but following a Supreme Court decision, the Revenue filed a miscellaneous application to modify the Tribunal's order. The Tribunal, referencing its previous decisions and the Supreme Court's ruling, allowed the Revenue's application, thereby modifying the original order to disallow the late payments.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29288 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-10-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 28-10-2022
• Other Referred Cases: Checkmate Services P. Ltd. Vs CIT (143 Taxmann.com 178; dated 12.10.2022), Electrical India (ITA No. 789/Chny/2022)
• Laws Referred To: ESI Act, PF Act, Section 254(2), Section 143(1)
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE DESPITE NOTICE. LEFT NO; ASHWIN D GOWDA LD.
• Assessee Lawyers: DISALLOWING LATE
• Section: 143(1); 254(2)

Judgement Text

" आयकर अपीलीय अिधकरण ‘बी’ \u0010ा यपीठ चे\u0015ई म\u0018। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI मा ननीय +ी मनोज क ुमा र अ/वा ल ,लेखा सद4 एवं मा ननीय +ी मनु क ुमा र िग8र, \u0010ा ियक सद4 क े सम9। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM M.A. No.141/Chny/2022 [In ITA No.442/Chny/2022] (िनधा :रण वष: / Assessment Year: 2018-19) ITO Non-Corporate Ward-15(1) Chennai. बना म / Vs. M/s. Anjappar Chettinad Restaurant Adyar 5, Dev Apartments, 1st Main Road, KB Nagar, Chennai-600 020. \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No. AAYFA-4758-M (अपीलाथ\u001c/Appellant) : (\u001f थ\u001c / Respondent) अपीलाथ\u001c कीओरसे/ Appellant by : Shri Ashwin D Gowda(Addl.CIT) - Ld. Sr. DR \u001f थ\u001cकीओरसे/Respondent by : None सुनवाई की तारीख/Date of Hearing : 25-10-2024 घोषणा की तारीख /Date of Pronouncement : 25-10-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this miscellaneous application, the revenue seeks recall / modification of Tribunal order passed in ITA No.442/Chny/2022 on 22- 06-2022. None has appeared for assessee despite notice. Left with no option, we proceed to dispose-off the present application. 2. The Ld. Sr. DR submitted that the only issue in the appeal was disallowance of late payment of ESI / PF and this matter has now been settled by Hon’ble Apex Court and therefore, the same may be followed. We also find that similar application has been allowed by us in our lead order passed in MA Nos.97/Chny/2022 & 11/Chny/2023 on 31.07.2023 wherein the applications of revenue has been allowed and the issue, on merits, has been decided against the assessee considering the decision of Hon’ble Supreme Court in the case of Checkmate Services P. Ltd. Vs CIT (143 Taxmann.com 178; dated 12.10.2022). 3. We find that the sole issue in the order was disallowance of late payment of ESI/PF. The bench deleted the disallowance. However, considering the cited decision of Hon’ble Apex Court, the bench in MA Nos.97/Chny/2022 & 11/Chny/2023 on 31.07.2023 held that there was mistake apparent from record in terms of section 254(2) and therefore, the Revenue’s applications were to be allowed. The issue, on merits was decided against the assessee. It was also held that such an adjustment could very well be made while processing return of income u/s 143(1) as per decision in Electrical India (ITA No. 789/Chny/2022). 4. Taking the same view, accepting the present application of the revenue, the captioned order stand modified and the impugned issue is decided against the assessee. Considering the same, Ld. AO / CPC is directed to re-compute the income of the assessee by disallowing late payment of Employees’ Contribution to PF / ESI which have been deposited beyond due date including grace period as specified in respective welfare ESI / PF acts. The order of Tribunal stand modified accordingly. 5. The application of Revenue stand allowed. Order pronounced on 25th October, 2024. Sd/- (MANU KUMAR GIRI) \u0010ा ियक सद4 / JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद4 / ACCOUNTANT MEMBER चे3ई Chennai; िदनांक Dated : 25-10-2024 DS आदेश की Nितिलिप अ/ेिषत / Copy of the Order forwarded to : 1. अपीलाथ\u001c/Appellant 2. \u001f थ\u001c/Respondent 3. आयकरआयु