Appeal details
Counselvise Citation
[2023] 101 COUNSELVISE.COM (IT) 3249 (ITAT-VISAKHAPATNAM)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 month(s) 4 day(s)
Appellant
Respondent
Appeal Type
Miscellaneous Application
Pronouncement Date
28-05-2023
Appeal Filed By
Department
Order Result
AllowedAllowed
Bench Allotted
DB
Next Hearing Date
09-03-2023
Assessment Year
2013-2014
Appeal Filed On
23-02-2023
Judgement Text
आयकरअपीलीयअधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER M.A.No.40/Viz/2022 (Arising out of I.T.A.No.104/Viz/2022) (ननधधारण वर्ा / Assessment Year : 2019-20) Dy.Commissioner of Income Tax Circle-3 (1), Range-2 Visakhapatnam Vs. M/s Amaravathi Power Associates, Visakhapatnam [PAN : AANFA4444M] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Shri ON Hari Prasada Rao, DR M.A.No.41/Viz/2022 (Arising out of I.T.A.No.74/Viz/2022) (ननधधारण वर्ा / Assessment Year : 2018-19) Deputy.Commissioner of Income Tax Circle-3(1) Range-2, Visakhapatnam Vs. M/s United Freight Carriers Pvt. Ltd., Visakhapatnam [PAN : AAACU4498B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri D.M.Rao, AR प्रत्यधथी की ओर से / Respondent by : Shri ON Hari Prasada Rao, DR M.A.No.42/Viz/2022 (Arising out of I.T.A.No.240/Viz/2020) (ननधधारण वर्ा / Assessment Year : 2013-14) Asst.Commissioner of Income Tax Central Circle-2, Visakhapatnam Vs. Sri Vijaya Visakha Milk Producers Co. Ltd., Visakhapatnam [PAN : AAJCS7398P] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri G.V.N.Hari, AR प्रत्यधथी की ओर से / Respondent by : Shri ON Hari Prasada Rao, DR 2 M.A. No.40-42/Viz/2022 & 01-05/Viz/2023,9-10/Viz/2023 & 12/Viz/2023 M/s Amaravathi Power Associates & Others M.A.No.01/Viz/2023 (Arising out of I.T.A.No.119/Viz/2022) (ननधधारण वर्ा / Assessment Year : 2019-20) Asst.Commissioner of Income Tax Circle-3(1), Visakhapatnam Vs. Srinivasa Rao Bathina, Visakhapatnam [PAN : AIWPB6250H] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri G.V.N.Hari, AR प्रत्यधथी की ओर से / Respondent by : Shri ON Hari Prasada Rao, DR M.A.No.02/Viz/2023 (Arising out of I.T.A.No.124/Viz/2022) (ननधधारण वर्ा / Assessment Year : 2019-20) Asst.Commissioner of Income Tax Circle-3(1), Visakhapatnam Vs. Shree Poly Films Pvt. Ltd., Visakhapatnam [PAN : AALCS3403K] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Shri ON Hari Prasada Rao, DR M.A.No.03/Viz/2023 (Arising out of I.T.A.No.111/Viz/2022) (ननधधारण वर्ा / Assessment Year : 2018-19) Income Tax Officer Ward-2 (1), Visakhapatnam Vs. AST Power Visakhapatnam (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Shri ON Hari Prasada Rao, DR 3 M.A. No.40-42/Viz/2022 & 01-05/Viz/2023,9-10/Viz/2023 & 12/Viz/2023 M/s Amaravathi Power Associates & Others M.A.No.04/Viz/2023 (Arising out of I.T.A.No.224/Viz/2022) (ननधधारण वर्ा / Assessment Year : 2018-19) Income Tax Officer Ward-2(1), Visakhapatnam Vs. M/s Hi Tech Instruments & Control Systems Visakhapatnam [PAN : AADFH9770K] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Shri ON Hari Prasada Rao, DR M.A.No.05/Viz/2023 (Arising out of I.T.A.No.218/Viz/2022) (ननधधारण वर्ा / Assessment Year : 2019-20) Income Tax Officer Ward-2(1) Visakhapatnam Vs. A.S.T.Power Visakhapatnam [PAN :AARFA3425E] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Shri ON Hari Prasada Rao, DR M.A.No.09/Viz/2023 & 10/Viz/2023 (Arising out of I.T.A.No.153/Viz/2022 & 228/Viz/2021) (ननधधारण वर्ा / Assessment Year : 2018-19 & 2019-20) Income Tax Officer Ward-3(3), Visakhapatnam Vs. Sri Ram Travels Visakhapatnam [PAN : ACQFS5781A] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Shri ON Hari Prasada Rao, DR 4 M.A. No.40-42/Viz/2022 & 01-05/Viz/2023,9-10/Viz/2023 & 12/Viz/2023 M/s Amaravathi Power Associates & Others M.A.No.12/Viz/2023 (Arising out of I.T.A.No.150/Viz/2022) (ननधधारण वर्ा / Assessment Year : 2013-14) Asst.Commissioner of Income Tax Circle-3(1) Range-2, Visakhapatnam Vs. M/s SSNR Projects Pvt. Ltd., Visakhapatnam [PAN : AARCS2464C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Shri ON Hari Prasada Rao, DR सुनवधई की तधरीख / Date of Hearing : 10.03.2023 घोर्णध की तधरीख/Date of Pronouncement : 29.05.2023 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : Condonation of Delay : These miscellaneous applicatons (M.As) are filed by the revenue, however, the following M.As are filed with the delay as follows : Sl. M.A.No. Period of Delay (in days) Condonation petiton Filed (i) 3/Viz/2023 10 Yes (ii) 4/Viz/2023 85 No (iii) 5/Viz/2023 85 No (iv) 9/Viz/2023 10/Viz/2023 139 Yes 2. The revenue ought to have filed miscellaneous application within six months from the date of order of the Tribunal. As per section 254(2) of the Income Tax Act, 1961 (in short “Act”), the Tribunal cannot 5 M.A. No.40-42/Viz/2022 & 01-05/Viz/2023,9-10/Viz/2023 & 12/Viz/2023 M/s Amaravathi Power Associates & Others entertain the miscellaneous applications filed beyond the limitation period, notwithstanding the fact that the condonation petiton filed / not filed. For clarity and convenience, section 254(2) of the Act is extracted as under : 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 rectifying 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 the Assessing Officer : In view of the above, the miscellaneous applications filed by the revenue in M.A.No.3/Viz/2023, 4/Viz/2023, 5/Viz/2023, 9/Viz/2023 and 10/Viz/2023 are dismissed in-limine. 3. With respect to other M.As in M.A.No. 40/Viz/2022 to 42/Viz/2022, 01/Viz/2023, 02/Viz/2023 and 12/Viz/2023, the Ld.DR submitted that subsequent to the ratio laiddown by the Hon’ble Supreme Court in the case of Checkmate Services (P) Limited Vs. CIT, in Civil Appeal No.2833 of 2016, the employees contribution of PF and ESI, if not paid within the due date under the relavant Acts, disallowance under the provisions of the Income Tax Act is mandatory. The Ld.DR has also relied on the CBDT Circular No.68 dated 17.11.1971. The Ld.DR, therefore, pleaded that the I.T.As may be recalled for rectification of the mistakes, in pursuance to the decision of the Hon’ble Supreme Court in the case of Checkmate Services (P) Ltd. (supra). 6 M.A. No.40-42/Viz/2022 & 01-05/Viz/2023,9-10/Viz/2023 & 12/Viz/2023 M/s Amaravathi Power Associates & Others 4. Per contra, the Ld.AR relied on the order of the Tribunal. 5. We have heard both the parties and perused the material available on record. Admittedly, interpretation of law by the Hon’ble Supreme Court would be effective not only from the date of decision, but from the insertion of statutory provisions. The Hon’ble Supreme Court in the case of Checkmate Services (P) Ltd. (supra) has held as follows : “They have to be deposited in terms of such welfare enactments. It is upon deposit, in terms of those enactments and on or before the due dates mandated bys uch concerned law, that the amount which is otherwise retained, and deemed an income is treated as a deduction. Thus, it is an essential condition for deduction that such amounts are deposited on or before the due date.” Since the decision of the Hon’ble Supreme Court pronounced the correct legal position of the allowability of belated payment of PF and ESI under the provisions of the Act, we are of the considered view that there is a mistake arisen as a result of the subsequent interpretation of law by the Hon’ble Supreme Court which would constitute “a mistake apparent from the records”. We, hereby allow the M.As filed by the revenue and recall the order passed by the Tribunal for hearing on 28.06.2023. Both the parties are directed to adhere to the notices issued by the Registry and present for hearing before the Tribunal. 9. In the result, miscellaneous applicatons filed by the revenue in M.A.Nos.3/Viz/2023, 4/Viz/2023, 5/Viz/2023, 9/Viz/2023 and 7 M.A. No.40-42/Viz/2022 & 01-05/Viz/2023,9-10/Viz/2023 & 12/Viz/2023 M/s Amaravathi Power Associates & Others 10/Viz/2023 are dismissed in-limine and in M.A Nos. 40/Viz/2022 to 42/Viz/2022, 01/Viz/2023, 02/Viz/2023 and 12/Viz/2023 are allowed. Order pronounced in the open court on 29 th May 2023. Sd/- Sd/- (एस बालाकृ ष्णन) (द ु व्वूरु आर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 29.05.2023 L.Rama, SPS आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. रधजस्व/The Revenue – (i) The Dy.Commissioner of Income Tax, Circle-3 (1), Range-2, Visakhapatnam (ii) The Asst.Commissioner of Income Tax, Central Circle-2, Visakhapatnam (iii) The Income Tax Officer, Ward-2(1), 2 nd Floor, Sankaramatham Road, Infinity Tower, Visakhapatnam (iv) The Income Tax Officer, Ward-3(3), Visakhapatnam (v) The Asst.Commissioner of Income Tax, Circle-3(1), Range-2, Visakhapatnam 2. ननधधाऩरती/ The Assessee– (i) M/s Amaravathi Power Associates, 36-91-30, Ravindra Nagar, Kancharapalem, Visakhapatnam (ii) M/s United Freight Carriers Pvt. Ltd., Flat No.205, Vinayaka Paradise Gajuwaka, Visakhapatnam (iii) Sri Vijaya Visakha Milk Producers Co. Ltd., Visakha Diary, BHPV Post, NH-1, Nathayyapalem, Visakhapatnam (iv) Sri Srinivasa Rao Bathina, 39-23-34/1, Vamsinagar, Madhavadhara, Visakhapatnam (v) M/s Shree Poly Films Pvt. Ltd., 50-53-11/10, Revathi Vihar Apartment, Seethammadhara, Visakhapatnam (vi) M/s AST Power, D.No.1-11, Durganagar, RRV Puram, Gopalapatnam, Visakhapatnam 8 M.A. No.40-42/Viz/2022 & 01-05/Viz/2023,9-10/Viz/2023 & 12/Viz/2023 M/s Amaravathi Power Associates & Others (vii) M/s Hi Tech Instruments & Control Systems, D.No.45-57-22/7, Narasimha Nagar, Sharoan Gardens, Visakhapatnam (viii) M/s Sri Ram Travels, 9-7-22/2, B abu Nilayam, Sivajipalem, Visakhapatnam (ix) M/s SSNR Projects Pvt.Ltd., 51-8-40, Behind BOC Limited, Seethammadhara, Visakhapatnam 3. The Principal Commissioner of Income Tax, Visakhapatnam 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam
AI Insights
The case involves multiple miscellaneous applications filed by the revenue against various respondents, primarily concerning the disallowance of deductions for employees' contributions to PF and ESI not paid within the statutory due dates. The Tribunal referenced the Supreme Court's decision in Checkmate Services (P) Ltd. vs. CIT, which clarified that such contributions must be deposited by the due dates mandated by the relevant welfare enactments to be eligible for deductions under the Income Tax Act. The Tribunal's decision to recall its earlier orders was based on this new interpretation of the law, which constituted a 'mistake apparent from the records'.
