Circle 11 (2), MUMBAI V. SEVEN S BANKING MANAGEMENT CONSULTANCY SERVICES (P. ) LTD, MUMBAI

MA 19/MUM/2023

AI Insights

The case involves the Assistant Commissioner of Income Tax (Asst. CIT) as the applicant and Seven S Banking Management Consultancy Services (P.) Ltd. as the respondent. The Revenue filed a Miscellaneous Application seeking to recall the Tribunal's order dated 25.05.2022, which had allowed the assessee's appeal regarding the disallowance made under section 36(1)(va) of the Income Tax Act, pertaining to the payment of employees' contributions to EPF and ESIC. The recall was sought based on a subsequent decision by the Hon'ble Apex Court in the case of M/s. Checkmate Services Pvt. Ltd., which ruled against the assessee on a similar issue. The Tribunal, after considering the submissions and the precedent set by the Apex Court, allowed the Revenue's application and recalled the earlier order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299463 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-04-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 09-03-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 10-01-2023
• Other Referred Cases: M/s. Checkmate Services Pvt. Ltd. (in Civil Appeal No. 2833 of 2016)
• Laws Referred To: Section 36(1)(va) of the Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM M A N o. 1 9/ M u m/ 2 02 3 ( A r is i n g o u t o f IT A N o . 0 3/ M u m / 20 22 ) ( A s s e ss me nt Y ea r: 20 1 8- 19 ) Asst. CIT-11(2) Mumbai-400 020 V s. Seven S Banking Management Consultancy Services (P.) Ltd. Office No. 014, Eco Heights, Shree Nityanand Society, Swami Nityanand Marg, Andheri (E), Mumbai-400 069 P A N / G I R N o. AA W CS 77 01 B (Applicant) : (Respondent) Applicant by : None Respondent by : Mr. Soumendu Kumar Dash D a te o f H e a r i n g : 10.03.2023 D ate of P ro n ou n ce me n t : 17.04.2023 O R D E R Per Kavitha Rajagopal, J M: This Miscellaneous Application has been filed by the Revenue for recalling the Tribunal’s order in ITA No. 3Mum/2022 vide order dated 25.05.2022 for the A.Y. 2018- 19 passed in light of the decision of the Hon'ble Apex Court in the case of M/s. Checkmate Services Pvt. Ltd. (in Civil Appeal No. 2833 of 2016 passed on 12.10.2022). 2. The brief facts of the case are that the Tribunal vide its order 25.05.2022 has allowed the assessee’s appeal challenging the disallowance made u/s. 36(1)(va), pertaining to deleted payment of employees contribution to EPF and ESIC. The Revenue has sought for recall of the said order on the basis of the decision of the Hon'ble Apex 2 M A N o . 1 9 / M u m / 2 0 2 3 ( A . Y . 2 0 1 8 - 1 9 ) Asst. CIT vs. Seven S Banking Management Consultancy Services (P.) Ltd. Court in the case of M/s. Checkmate Services Pvt. Ltd. (supra), wherein the said issue was decided against the assessee. 3. We have heard the rival submissions and perused the materials available on record. It is observed that the Hon'ble Apex Court in the case of M/s. Checkmate Services Pvt. Ltd. (supra) has decided this issue against the assessee and, hence, we are inclined to recall the order on the basis of the decision of the Hon'ble Apex Court. 4. In the result, the Miscellaneous Application filed by the Revenue is allowed. Order pronounced in the open court on 17.04.2023 Sd/- Sd/- (Prashant Maharishi) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 17.04.2023 Roshani , Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai