DCIT, CPC, Bangalore V. Mohammed Qurban, Medinipur

MA 11/KOL/2023

AI Insights

The case revolves around a miscellaneous application by the revenue seeking to recall a previous Tribunal order that had favored the assessee regarding deductions for employees' contributions to PF & ESI under Section 36(1)(va) read with Section 2(24)(x) of the Income Tax Act. The Tribunal initially followed a precedent set in Lumino Industries Ltd. vs. ACIT, which was later contested based on a Supreme Court ruling in Checkmate Services (P.) Ltd. v. Commissioner of Income-tax-1. The Supreme Court's decision emphasized strict compliance with the aforementioned sections, rejecting the applicability of Section 43B on employees' contributions to PF & ESI, contrary to some High Court rulings that had favored the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122953 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-06-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 29-01-2023
• 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
• Assessee Lawyers: ANANDA SEN; SABYASACHI MANDAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH ‘SMC’ KOLKATA BEFORE DR. MANISH BORAD, ACCOUNTANT MEMBER AND SHRI SONJOY SARMA, JUDICIAL MEMBER MA No. 11/KOL/2023 Assessment Year: 2018-19 [IN ITA NO. 162/KOL/2022] DCIT, CPC, Bangalore Vs. Mohammed Qurban Shantipur, Mecheda, Kolaghat, East Medinipur-721137. PAN: AABPQ 0008 R (Appellant) (Respondent) Present for: Assessee by : Shri Ananda Sen & Shri Sabyasachi Mandal, AR Revenue by : Shri Vijay Kumar, Addl. CIT Date of Hearing : 02.06.2023 Date of Pronouncement : 06.06.2023 ORDER PER SONJOY SARMA, JUDICIAL MEMBER: This miscellaneous application filed by the revenue seeks to recall the order of the Tribunal in ITA No.162/Kol/2022; dt. 6 th June, 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 employees’ contribution to PF & ESI and M.A 11/Kol/2023 Assessment Year: 2018-19 Mohammed Qurban 2 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 6 th June, 2022 and direct the Registry to fix the appeal in ITA No.162/Kol/2022, in the month of July, 2023 after serving notice to both the parties. 4. In the result, miscellaneous application of the revenue is allowed. Order pronounced in the open court on 06.06.2023. Sd/- Sd/- (Manish Borad) (Sonjoy Sarma) Accountant Member Judicial Member Dated: 06.06.2023. Biswajit Copy of the order forwarded to: 1. Appellant- DCIT, CPC, Bangalore. 2. Respondent – Mohammed Qurban. 3. Ld. CIT 4. Ld. CIT(A) 5. Ld. DR 6. True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata