J M D SERVICES PRIVATE LIMITED,PATNA V. JOINT COMMISSIONER , PUNE

ITA 423/PAT/2024

AI Insights

The case involves J M D Services Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) that upheld the disallowance of Rs. 1,27,67,220/- claimed as a deduction for delayed deposit of ESI/EPF contributions. The primary legal contention was whether the deduction should be allowed if the payments were made before the due date of filing the return of income. The assessee argued that during the COVID-19 pandemic, a circular from the EPF organization exempted penalties for delayed payments, suggesting that such extraordinary circumstances warranted a relaxation of the usual rules. However, both the CIT(A) and the ITAT dismissed this argument, citing the binding precedent from the Supreme Court in Checkmate Services (P.) Ltd.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312796 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2021-2022
• Other Referred Cases: Checkmate Services (P.) Ltd. vs. 448 ITR 518 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “PATNA BENCH”, PATNA (VIRTUAL HEARING AT KOLKATA) SHRI DUVVURU RL REDDY, VICE PRESIDENT SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No.423/Pat/2024 (Assessment Year 2021-22) J M D Services Private Limited, Plot No. 60, Nandan Puri, Maurya Path, Khajpura, Bihar - 800014 [PAN: AACCJ7420N] ..............…...…………….... Appellant vs. Joint Commissioner, Pune, Office of the Commissioner of Income Tax (Appeal), Addl./JCIT(A)-2, Pune - 412303 ................................ Respondent Appearances by: Assessee represented by : Supriya Sharma, CA Department represented by : Ashwani Kr. Singal, JCIT Date of concluding the hearing : 23.04.2025 Date of pronouncing the order : 29.04.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. The present appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereinafter “the Act”), passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter the Ld. CIT(A)”] vide order dated 19.03.2024 for AY 2021-22. 1.1. In this case, the Ld. AO-CPC disallowed Rs. 1,27,67,220/- u/s 36(1)(va) of the Act, on account of delayed deposit of ESI/EPF contribution. Aggrieved with this action, the assessee approached the Ld. CIT(A), where also he could not succeed since the Ld. CIT(A) followed the case of Checkmate Services (P.) Ltd. reported in 448 ITR 518 (SC) and held the issue to be squarely covered against the assessee. 2 ITA No. 423/Pat/2024 J M D Services Pvt. Ltd. 2. Following the order of Ld. CIT(A), the assessee has approached the ITAT with grounds of appeal which are detailed and argumentative. However, in brief, the assessee has challenged the action of Ld. CIT(A) on the ground that the amounts in question were deposited before the due date of filing of return. 2.1 The Ld. AR drew our attention to the fact that a circular had been issued by the EPF organisation that during the lockdown period (Covid-19 Pandemic) there would be no levy of penalty in case of delayed payment. On this ground, the Ld. AR argued that during such extraordinary circumstances, a small delay could be permitted. 2.2 The Ld. DR relied on the orders of Ld. CIT(A). 3. We have carefully considered the submission and the document before us, we find that before the Ld. CIT(A) only one ground was taken and that was to say that since the payment had been made in the government account before the due date of filing of return hence the same should be allowed. Thus, it is clear that the assessee did not agitate the ground of possible allowability of payment on account of any relaxation in the respective EPF Act on account of Covid-19. In any case, we respectfully follow the binding judgment in the case of Checkmate Service (P) Ltd. (supra) and uphold the order of Ld. CIT(A). 4. In the result, appeal filed by the assessee is dismissed. Order pronounced on 29.04.2025 Sd/- Sd/- (Duvvuru RL Reddy) (Sanjay Awasthi) Vice President Accountant Member Dated: 29.04.2025 AK, Sr. P.S. 3 ITA No. 423/Pat/2024 J M D Services Pvt. Ltd. Copy of the order forwarded to: 1. J M D Services Private Limited 2. Joint Commissioner, Pune 3. CIT(A)- 4. CIT- 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "