DCIT, CORPORATE CIRCLE-1(1), CHENNAI V. ENMAS INDIA PRIVATE LIMITED , TIRUVALLUR

MA 112/CHNY/2023

AI Insights

The case involves a Miscellaneous Petition filed by the Revenue seeking to recall an earlier order of the Income-Tax Appellate Tribunal, which had allowed the appeal of M/s. Enmas India Private Limited regarding the deduction of employees' contributions to PF/ESI for the assessment year 2020-21. The Revenue argued that a subsequent decision in the case of M/s. Checkmate Services P. Ltd. revealed a mistake apparent in the Tribunal's earlier order. However, the Tribunal dismissed the MP on the grounds of being time-barred and also on the merits, noting that the cited case law was not available at the time of the original decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135384 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-09-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 07-09-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 02-07-2023
• Other Referred Cases: M/s. Checkmate Services P. Ltd., Adyar Anand Bhawan Sweets India Pvt. Ltd. v. ACIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 254(2)

Judgement Text

आयकर अपीलीय अिधकरण, ’बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी वी दुगाŊ राव Ɋाियक सद˟ एवं ŵी मंजुनाथा, जी., लेखा सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member & Shri Manjunatha, G. Accountant Member M.P. No. 112/Chny/2023 [In I.T.A. No.714/Chny/2022] Assessment Year: 2020-21 The Deputy Commissioner of Income Tax, Corporate Circle 1(1), Chennai 600 034. Vs. M/s. Enmas India Private Limited, SP 107, EOM Square Ambattur, Ambattur Indl. Estate S.O., Tiruvallur, Tamil Nadu 600 058. [PAN:AABCE4825F] (Petitioner) (ŮȑथŎ/Respondent) Petitioner by : Shri Sajit Kumar, JCIT ŮȑथŎ की ओर से/Respondent by : None सुनवाई की तारीख/ Date of hearing : 08.09.2023 घोषणा की तारीख /Date of Pronouncement : 08.09.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: By means of present Miscellaneous Petition, the Revenue seeks to recall the order passed by the Tribunal in I.T.A. No. 714/Chny/2022 dated 26.09.2022 relevant to the assessment year 2020-21. 2. By referring to the petition, the ld. DR has submitted that the order of the Tribunal in allowing the appeal by directing revenue authorities to allow the deduction of employees’ contribution to PF/ESI, M.P. No.112/Chny/23 2 by which the appeal of the assessee was allowed vide order dated 26.09.2022. It was further submission that in view of the decision in the case of M/s. Checkmate Services P. Ltd. dated 12.10.2022, there is a mistake apparent in the face of the order of the Tribunal and pleaded for recalling and adjudicating the appeal afresh. 2. When the miscellaneous petition was taken up for hearing, none appeared on behalf of the assessee. Hence, we proceed to decide the petition on merits after hearing the ld. DR. 3. We have heard the ld. DR, perused the petition as well as order passed by the Tribunal dated 26.09.2022. As per the present practice followed by the Tribunal, the appeal order pronounced in the open court and the time limit for filing of Miscellaneous Petition is six months for seeking recall i.e., parties are entitled to seek recall/rectification of the said order within six months under section 254(2) of the Income Tax Act, 1961, as amended w.e.f. 01.06.2016 which reads as under:- “254 (2) The Appellate Tribunal may, at any time within “six months from the end of the month in which the order was passed”, with a view to rectify any mistake apparent from the record, amend any order passed by it under sub-section (1), and shall make such amendment if the mistake is brought to its notice by the assessee or as the Assessing Officer.” The abovementioned provision empowers the Tribunal to rectify its mistake if the assessee or the Assessing Officer brought the same to the M.P. No.112/Chny/23 3 notice of the Tribunal by filing miscellaneous petition within the period of limitation i.e., “six months in which the order was passed”. In the instant case, the appeal order was passed/ pronounced on 26.09.2022 and from the end of the month; the period of six month expires on 31.03.2023. The Revenue has filed the present Miscellaneous Petition on 03.07.2023 recalling the order of the Tribunal dated 26.09.2022, thereby the MP filed by the petitioner is barred by limitation of three months and two days and thus, the MP filed by the Revenue is not maintainable and liable to be dismissed. 4. On merits, by reproducing relevant observations/findings of the Coordinate Benches decision in the case of Adyar Anand Bhawan Sweets India Pvt. Ltd. v. ACIT (134 Taxmann.com 56; 08.12.2021, in the case of the assessee, vide order dated 26.09.2022, the Tribunal has remitted the matter back to the file of the Assessing Officer to verify the details and decide the issue afresh in accordance with law and in case, the Assessing Officer observe that the assessee has remitted the employee’s contribution of PF & ESI before the due date of filing of return, then, the Assessing Officer should allow the claim of the assessee in view of the decision referred hereinabove and the appeal of the assessee has been allowed for statistical purposes. However, the case law relied upon M.P. No.112/Chny/23 4 by the ld. DR in the case of M/s. Checkmate Services P. Ltd. (supra) was pronounced on 12.10.2022, which was not available before the Tribunal while concluding its order dated 26.09.2022. Thus, on both counts, the miscellaneous petition filed by the Revenue is liable to be dismissed and accordingly, the MP filed by the Revenue is dismissed. 5. In the result, the MP filed by the Revenue is dismissed. Order pronounced in the open Court on 8 th September, 2023 at Chennai. Sd/- Sd/- (MANJUNATHA, G.) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 08.09.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF.