DCIT, Chennai V. Gokul Industries, Chennai

MA 166/CHNY/2022

AI Insights

The case involves the Income Tax Department (Revenue) seeking rectification of the Tribunal's earlier order concerning the late payment of Employees' Contributions to PF/ESI by M/s. Gokul Industries for the assessment year 2019-20. The Tribunal had previously passed an order in favor of the assessee, which the Revenue sought to challenge through the Miscellaneous Applications. The Tribunal, referencing the decision of the Hon'ble Supreme Court in Checkmate Services P. Ltd. Vs CIT, found a mistake apparent from the record and thus allowed the Revenue's application, modifying the earlier order to decide the issue against the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134365 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-07-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 18-05-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 26-10-2022
• Other Referred Cases: Checkmate Services P. Ltd. Vs CIT (143 Taxmann.com 178; dated 12.10.2022), Electrical India (ITA No. 789/Chny/2022)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(1); 254(2)

Judgement Text

आयकर अपीलीय अिधकरण “सी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा एवं माननीय ी मनोज कु मार अ%वाल ,लेखा सद( के सम । BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM M. A. No.166/Chny/2022 [In ITA No.412/Chny/2021] (िनधा@रण वष@ / Assessment Year: 2019-20) & M. A. No.167/Chny/2022 [In ITA No.577/Chny/2021] (िनधा@रण वष@ / Assessment Year: 2019-20) ACIT Non-Corporate Circle-19(1), Chennai बनाम/ V s. M/s.Gokul Industries 7-A,Kamatchiamman Street, Sathyamoorthy Nagar, Ekkaduthangal, Chennai-600 032. थायीलेखासं./जीआइआरसं./PAN/GIR No. AAAFG-2132-R (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri AR.V.Sreenivasan (Addl.CIT)- Ld.DR थ कीओरसे/Respondent by : Shri I.Dinesh & Shri P.M.Kathir(Advocates)-Ld .AR सुनवाईकीतारीख/Date of Hearing : 19-05-2023 घोषणाकीतारीख/Date of Pronouncement : 31-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of captioned Miscellaneous Applications, the Revenue seeks our indulgence in Tribunal order passed in captioned appeals on 19.04.2022. The revenue has filed similar applications in bunch of 2 appeals seeking restoration / rectification of order on identical grounds. All these applications were heard together and opportunity was given to learned authorized representatives of all the assessees to meet out the applications filed by the revenue. The captioned applications were also heard along with that bunch. It was admitted position that the adjudication in lead applications would apply to all the other similar applications filed by the revenue. The lead order has now been passed by the bench in MA Nos. 97/Chny/2022 & 11/Chny/2023 on 31.07.2023 wherein the applications of revenue has been allowed and the issue, on merits, has been decided against the assessee considering the decision of Hon’ble Supreme Court in the case of Checkmate Services P. Ltd. Vs CIT (143 Taxmann.com 178; dated 12.10.2022). After considering the rival submissions, the Bench held that there was mistake apparent from record in terms of section 254(2) and therefore, the Revenue’s applications were to be allowed. The issue, on merits was decided against the assessee. It was also held that such an adjustment could very well be made while processing return of income u/s 143(1) as per decision in Electrical India (ITA No. 789/Chny/2022). 2. Accordingly, accepting the present application MA No.167/Chny/2022, the captioned order stand modified and the impugned issue is decided against the assessee. The Ld. AO is directed to re-compute the income of the assessee by disallowing late payment of Employees’ Contribution to PF / ESI which have been deposited beyond due date as specified in respective welfare ESI / PF acts. The order of Tribunal in ITA No.577/Chny/2021 stands modified accordingly. MA No.166/Chny/2022 stands dismissed since ITA No.412/Chny/2021 was already dismissed by the bench as infructuous. 3 3. MA No.167/Chny/2022 stands allowed whereas MA No.166/Chny/2022 stands dismissed. Order pronounced on 31 st July, 2023. Sd/- (MAHAVIR SINGH) उपा /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखासद( /ACCOUNTANT MEMBER चे5ई Chennai; िदनांक Dated : 31-07-2023 DS आदेशकीTितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant2. यथ /Respondent 3.आयकरआय ु त/CIT 4. वभागीय त न ध/DR 5.गाड फाईल/GF