I.T.O., Ward - 6(1), Kolkata, Kolkata V. Bose Management Services Pvt. Ltd., Kolkata

MA 13/KOL/2023

AI Insights

The case involves the Income Tax Officer, Ward-6(1), Kolkata as the appellant and Bose Management Services Pvt. Ltd. as the respondent. The core issue was the deduction claim on employees' contributions towards PF & ESI under Section 36(1)(va) read with Section 2(24)(x) of the Income Tax Act. Initially, the Tribunal had dismissed the revenue's appeal following its earlier decision in Lumino Industries Ltd. vs. ACIT. However, following the Supreme Court's decision in Checkmate Services (P.) Ltd., which clarified the legal position on this matter, the Tribunal recalled its earlier order and directed a re-hearing of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136106 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-07-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 05-02-2023
• 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 अपीलीय अिधकरण Ɋायपीठ, कोलकाता । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE DR. MANISH BORAD, HON’BLE ACCOUNTANT MEMBER M.A. No. 13/Kol/2023 Assessment Years: 2018-19 Income Tax Officer, Ward- 6(1), Kolkata Vs. Bose Management Services Pvt. Ltd. P-82, Dakshini Cooperative Housing Society Limited Canal South Road Kolkata - 700105 [PAN: AADCB1495J] (Appellant) (Respondent) Assessee by : None Revenue by : Shri Vijay Kumar, Addl. CIT, Sr. D/R सुनवाई की तारीख/Date of Hearing : 23/06/2023 घोषणा की तारीख/Date of Pronouncement : 06/07/2023 O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER: By way of this miscellaneous application, revenue seeks to recall the order of the Tribunal in ITA No. 435/Kol/2022; dt. 20/09/2022, wherein the Tribunal had dismissed the appeal of the revenue 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 2 M.A. No. 13/Kol/2023 Assessment Years: 2018-19 I.T.A. No. 435/Kol/2022 Assessment Years: 2018-19 Bose Management Services Pvt. Ltd. 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 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 dt. 20/09/2022 and direct the assessee to fix this appeal in due course and inform both the parties. 4. In the result, the miscellaneous application filed by the revenue is allowed as per the terms indicated above. Order pronounced in the open court on 06.07.2023. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER Kolkata, Dated: 06.07.2023 SC. Sr. P.S. Copy to: 1. The Appellant: 2. Respondent : 3. The CIT(A)- Kolkata 4. The CIT , Kolkata. 5. The DR ITAT, Kolkata. //True Copy// By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata