INCOME TAX OFFICER-41(1)(2), MUMBAI V. M/S GULABCHAND & CO, MUMBAI

MA 169/MUM/2023

AI Insights

The case revolves around the Income Tax Appellate Tribunal's decision to recall its earlier order concerning the deduction claims of M/s. Gulabchand & Co. related to PF/ESI contributions. Initially, the Tribunal had allowed the assessee's claim for deductions on contributions made after the due date but before the due date of filing the return of income under section 139(1) of the Income Tax Act. However, following the Supreme Court's ruling in Checkmate Services Pvt. Ltd. Vs. CIT-1, which clarified that such contributions must be made within the statutory due dates to qualify for deductions, the Tribunal recalled its earlier decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125816 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-06-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 01-06-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 13-02-2023
• Other Referred Cases: Checkmate Services Pvt. Ltd. Vs. CIT-1(448 ITR 518)
• Laws Referred To: PE/ESIC Act, Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI BR BASKARAN, AM AND SHRI ABY T. VARKEY, JM MA. No. 169/Mum/2023 (Arising out of ITA. No.1922/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2019-20) ITO-41(1)(2) Room No. 614, 6 th Floor, G- Block, Kautilya Bhavan, Bandra Kurla Complex, Bandra East, Mumbai- 400051. बिधम/ Vs. M/s. Gulabchand & Co B, Building Estate, Andheri Kurla Road, Sakinaka, Andheri East, Mumbai-400072. स्थधयी लेखध सं./जीआइआर सं./PAN/GIR No. : AAAFG1460E (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) सुनवाई की तारीख / Date of Hearing: 02/06/2023 घोषणा की तारीख /Date of Pronouncement: 23/06/2023 आदेश / O R D E R PER ABY T. VARKEY, JM: By preferring Miscellaneous application no. 169/Mum/2023, the revenue seek to recall the order of this Tribunal passed in ITA No. 1922/Mum/2022 dated 28.09.2022. 2. The revenue submitted that Tribunal in appeal ITA No. 1922/Mum/2022 for AY. 2019-20 has allowed the assessee’s claim of deduction pertaining to PF/ESI amount deposited as employee’s contribution to the relevant funds beyond the due date for payment as specified in the PE/ESIC Act [but paid before the due date of filing return of income u/s 139(1) of the Act]. In this regard, revenue submitted that Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. Vs. CIT-1(448 ITR 518) has set at rest the controversy wherein it was held an assessee (employer) have to deposit the employee’s contribution towards PF/ESIC on or before the Assessee by: None Revenue by: Shri Soumendu Kumar Dash (Sr. DR) MA. No.169/Mum/2023 A.Y. 2019-20 Gulabchand & Co. 2 due date prescribed in the respective law i.e, PF/ESIC Act, for availing the deduction. Taking in to consideration the decision of Hon’ble Supreme Court as referred to above, we recall the impugned order of the Tribunal on this issue and order accordingly. 3. In the result, Miscellaneous application filed by the revenue is allowed. Order pronounced in the open court on this 23/06/2023. Sd/- Sd/- (BR BASKARAN) (ABY T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER मुुंबई Mumbai; दिनाुंक Dated : 23/06/2023. Vijay Pal Singh, (Sr. PS) आदेश की प्रनिनलनि अग्रेनर्ि/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, सत्यादपत प्रदत //True Copy// उि/सहधयक िंजीकधर /(Dy./Asstt. Registrar) आयकर अिीलीय अनर्करण, मुुंबई / ITAT, Mumbai 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 4. आयकर आयुक्त / CIT 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, मुुंबई / DR, ITAT, Mumbai 6. गार्ड फाईल / Guard file.