ADIT,CPC, BENGALURU V. AMUTHA, CHENNAI

MA 209/CHNY/2022

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The case involves a Miscellaneous Application filed by the Revenue seeking rectification of a Tribunal order concerning the late payment of Employees' Contributions to PF/ESI by the assessee, Amudha. Initially, the Tribunal's decision was in favor of the assessee, but upon the Revenue's application and reference to the Supreme Court's decision in Checkmate Services P. Ltd. Vs CIT, the Tribunal modified its order. The Tribunal held that there was a mistake apparent from the record under section 254(2) and decided the issue against the assessee, directing the Assessing Officer to re-compute the income by disallowing the late payments.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134047 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-08-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 18-05-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 18-12-2022
• 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: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: DISALLOWING LATE PAYMENT OF EMPLOYEES CONTRIBUTION
• 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 +ी वी. द ु गा1 राव, ाियक सद2 एवं माननीय +ी मनोज कु मार अ7वाल ,लेखा सद2 के सम9। BEFORE HON’BLE SHRI V. DURGA RAO, JUDICIAL MEMBER AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM M. A. No.209/Chny/2022 [In ITA No.238/Chny/2022] ( िनधा1रण वष1 / Assessment Year: 2019-20) ACIT, Non-Corporate Circle-22(1), Chennai. बनाम / V s . Amudha No.46/A, 2 nd floor, Halls Road, Kilpauk, Chennai-600 010. थायी लेखा सं. /जीआइ आर सं. /P AN / G I R N o. BEKPA-6777-D (अ पीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri P. Sajit Kumar (JCIT) – Ld. Sr. DR थ की ओरसे/Respondent by : None सुनवाई की तारीख/Date of Hearing : 19-05-2023 घोषणा की तारीख /Date of Pronouncement : 07-08-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of captioned Miscellaneous Application, the Revenue seeks our indulgence in Tribunal order passed in captioned appeal on 26.05.2022. The revenue has filed similar applications in bunch of 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 - 2 - applications filed by the revenue. The captioned application was 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 of the revenue, 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 stand modified accordingly. 3. The application stands allowed. Order pronounced on 7 th August, 2023 Sd/- (V. DURGA RAO) ाियक सद2 /JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद2 / ACCOUNTANT MEMBER - 3 - चे.ई Chennai; िदनांक Dated :07-08-2023 DS आदेशकीUितिलिपअ7ेिषत/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