I.T.O., Ward-33(4), Kolkata, Kolkata V. Ram Narayan Poddar, Kolkata

MA 1/KOL/2023

AI Insights

The case revolves around the Income Tax Appellate Tribunal's initial decision to allow an appeal concerning the deduction of employees' contributions to PF & ESI under Section 36(1)(va) read with Section 2(24)(x) of the Income Tax Act. This decision was influenced by a prior Tribunal order in Lumino Industries Ltd. vs. ACIT. However, following a Supreme Court ruling in Checkmate Services (P.) Ltd. v. Commissioner of Income-tax-1, which emphasized the necessity of strict compliance with the aforementioned sections and rejected the applicability of Section 43B on employees' contributions, the Tribunal decided to recall its earlier order. The Tribunal's decision to recall was aimed at aligning with the Supreme Court's interpretation and ensuring adherence to the statutory requirements for claiming such deductions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128118 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-03-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 02-03-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 02-01-2023
• Other Referred Cases: Lumino Industries Ltd. vs. ACIT, Circle-5(1), Kolkata, Checkmate Services (P.) Ltd. v. Commissioner of Income-tax-1
• Laws Referred To: Section 36(1)(va), Section 2(24)(x), Section 43B
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B

Judgement Text

आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘एसएमसी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA Įी मनीष बोरड, लेखा सदèय के सम¢ Before Dr. Manish Borad, Accountant Member M.A 1/Kol/2023 (In I.T.A. No.409/Kol/2022) Assessment Year: 2018-19 ITO, Ward-33(4), Kolkata..............................................................Appellant vs. Ram Narayan Poddar......................................................................Respondent 11/2A, Christopher Road, Tangra, Kolkata-700046. [PAN: AJLPP6611Q] Appearances by: Smt. Ranu Biswas, Addl. CIT-DR, appeared on behalf of the appellant. None appeared on behalf of the Respondent. Date of concluding the hearing : March 03, 2023 Date of pronouncing the order : March 13, 2023 ORDER Per Manish Borad, Accountant Member: This miscellaneous application filed by the revenue seeks to recall the order of the Tribunal in ITA No.409/Kol/2022; dt. 25 th August, 2022, wherein the Tribunal had allowed the appeal of the assessee involving the issue of employees’ contribution towards PF & ESI u/s. 36(1)(va) r.w.s. 2(24)(x) of the Act by following the order of this Tribunal in the case of Lumino Industries Ltd. vs. ACIT, Circle-5(1), Kolkata, in ITA No. 365/Kol/2021; Assessment Year 2015-16, order dt. 17/11/2021. 2. We find that the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. v. Commissioner of Income-tax-1 [2022] 143 taxmann.com 178 (SC), has held in favour of the revenue, that strict compliance with Section 36(1)(va) r.w.s. 2(24)(x) is a must to claim deduction and provisions of Section 43B of the Act cannot be applied on M.A 1/Kol/2023 Assessment Year: 2018-19 Ram Narayan Poddar 2 employees’ contribution to PF & ESI and further held that the High Court rulings favouring the assessee had not laid down the correct law. 3. In view of the above, we deem it fit to recall the order of this Tribunal dated 25 th August, 2022 and direct the Registry to fix the appeal in ITA No.409/Kol/2022, in the month of April, 2023 after serving notice to both the parties. 4. In the result, miscellaneous application of the revenue is allowed. Kolkata, the 13 th March, 2023. Sd/- [Manish Borad] Accountant Member Dated: 13.03.2023. RS Copy of the order forwarded to: 1. ITO, Ward-33(4), Kolkata 2. Ram Narayan Poddar 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches