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

MA 215/MUM/2023

AI Insights

The case involves a Miscellaneous Application filed by the Revenue seeking to recall an earlier order concerning the disallowance of Employees' contributions to Provident Fund (PF) and Employees State Insurance Contribution (ESIC) which were deposited after the due dates specified under the respective Acts. The Department argued, referencing the Supreme Court's decision in Checkmate Services India (Pvt.) Ltd. vs. CIT, that such contributions are not deductible under section 36(1)(va) of the Income Tax Act if deposited beyond the due date. The assessee opposed the application, but the Tribunal decided in favor of the Revenue, recalling the previous order and restoring the appeal for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136046 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-04-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 25-05-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 27-02-2023
• Other Referred Cases: Checkmate Services India (Pvt.) Ltd. vs. CIT, 448 ITR 518
• Laws Referred To: Provident Fund Act, Employees State Insurance Act, 1948, Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

म ु ंबई ठ “एच ”, म ु ंबई ब . ब , ेख एवं व व ! , " # े म$ IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “ H ”, MUMBAI BEFORE SHRI B.R.BASKARAN , ACCOUNTANT MEMBER & SHRI VIKAS AWASTHY, JUDICIAL MEMBER M.A NO.215/MUM/2023 [ Arising out of ITA NO.1889/MUM/2022 (A.Y.2018-19)] Income Tax Officer -41(1)(2), Room NO.614, 6 th Floor, G.Block, Kautilya Bhavan, Bandra Kurla Complex,Bandra East, Mumbai – 400 051 ...... % !& /Applicant बन म Vs. Gulabchand & Co., B-Building, Unit No.5, Tejpal Industrial Estate,Andheri Kurla Road, Sakinaka, Andheri (E), Mumbai – 400 072. PAN: AAAFG-1460-E ..... %#)व /Respondent % !& *व / Applicant by : Dr. Samuel Pitta, Sr. A.R %#)व *व /Respondent by : Shri Radhakant Saraf ु नव ई + #) !/ Date of hearing : 26/05/2023 ,-. + #) !/ Date of pronouncement : 26/05/2023 आदेश/ ORDER PER VIKAS AWASTHY, JM: This Miscellaneous Application has been filed by the Revenue for recalling order dated 10/08/2022 in ITA No.1889/Mum/2022 for assessment year 2018-19. 2. Dr. Samuel Pitta representing the Department submitted that the assessee in appeal had assailed the findings of CIT(A) in disallowing Employees 2 M.A NO.215/MUM/2023 [ Arising out of ITA NO.1889/MUM/2022 (A.Y.2018-19)] contribution to Provident Fund(PF) and Employees State Insurance Contribution (ESIC) as the said amount was deposited by the assessee after due date as specified under the relevant Acts i.e. Provident Fund Act and Employees State Insurance Act, 1948. The ld. Departmental Representative submitted that the Hon'ble Supreme Court of India in the case of Checkmate Services India (Pvt.) Ltd. vs. CIT, 448 ITR 518 has held that Employees contribution towards PF and ESIC after due date under the respective Acts is not allowable as deduction. 3. Per contra, Shri Radhakant Saraf appearing on behalf of the assessee vehemently opposed the Miscellaneous Application. 4. We have heard the submissions made by rival sides The Hon'ble Supreme Court of India in the case of Checkmate India (Pvt.) Ltd. vs. CIT(supra) in an unambiguous manner has clarified that Employees contribution deposited beyond due date as specified under the relevant Acts would not be eligible for deduction u/s. 36(1)(va) of the Act. In light of the decision in the case of Checkmate India (Pvt.) Ltd. Vs. CIT (supra), order dated 10/08/2022 in ITA No.1889/Mum/2022 is recalled and appeal of the assessee is restored to its original number. The Registry is directed to fix appeal for fresh hearing in due course, after notice to both the sides. 5. In the result, Miscellaneous Application by the Revenue is allowed. Order pronounced in the open Court on Friday the 26 th day of May,2023. Sd/- Sd/- (B.R. BASKARAN) (VIKAS AWASTHY) ेख /ACCOUNTANT MEMBER " # /JUDICIAL MEMBER म ु ंबई/ Mumbai, / न ं /Dated 26/05/2023 Vm, Sr. PS(O/S) 3 M.A NO.215/MUM/2023 [ Arising out of ITA NO.1889/MUM/2022 (A.Y.2018-19)] े Copy of the Order forwarded to : 1. !&/The Appellant , 2. %#)व / The Respondent. 3. ु 0)( )/ The CIT(A)- 4. ु 0) CIT 5. व3 4 %#)#न , . . ., म ु बंई/DR, ITAT, Mumbai 6. 4 56 7 8 /Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, Mumbai