Deputy Commissioner of Income Tax, Circle 3(1)(1), Mumbai, Mumbai V. Geekay Facility Management Private Limited, Mumbai

MA 250/MUM/2023

AI Insights

The case revolves around the Revenue's application to recall a Tribunal order that had allowed the deduction of delayed deposits of employees' contributions to Provident Fund/ESIC and labor welfare fund. Initially, the Tribunal had permitted the deduction based on various court decisions, including a jurisdictional High Court decision. However, following a Supreme Court ruling in Checkmate Services P. Ltd. vs. CIT, which categorically stated that such deductions are not permissible if the deposits are made after the statutory due date, the Revenue filed a Miscellaneous Application to recall the Tribunal's order. The Tribunal, upon reviewing the Supreme Court's decision, agreed with the Revenue and recalled its earlier order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299459 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-11-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 08-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 20-03-2023
• Other Referred Cases: Checkmate Services P. Ltd. vs. CIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 48

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 . 2 50/ M u m/ 20 2 3 ( A r is i n g o u t o f IT A N o. 14 5/ M u m/ 2 02 2 ) ( A s s e ss me nt Y ea r: 20 1 8- 19 ) Dy. CIT, Circle 3(1)(1) Mumbai V s. Geekay Facility Management Private Limited G-11, Tulsani Chambers, Free Press Journal Marg, Nariman Point, Mumbai-400 021 P A N / G I R N o. AA CC G 1 48 3 G (Applicant) : (Respondent) Applicant by : Shri Gyaneshwar Kataram Respondent by : Shri Minal Kamble D a te o f H e a r i n g : 09.06.2023 D ate of P ro n ou n ce me n t : 03.11.2023 O R D E R Per Kavitha Rajagopal, J M: This Miscellaneous Application has been filed by the Revenue for recalling the order by the Tribunal in ITA No. 145/Mum/2022 dated 29.07.2022 on the ground of recent decision of Hon'ble Apex Court in the case of Checkmate Services P. Ltd. vs. CIT (in Civil Appeal No. 2833 of 2016 vide order dated 12.10.2022). 2. The brief facts are that the assessee had challenged the disallowance of Rs.30,93,567/- made by the lower authorities u/s. 36(1)(va) of the Act towards delayed deposit of employees contribution to Provident Fund/ESIC and labor welfare fund which was deposited after the due date prescribed under the relevant Act but nevertheless before filing of the return of income. The Tribunal vide order dated 29.07.2022 has allowed the appeal of the assessee by relying on the decision of the various courts including the 2 M A N o . 2 5 0 / M u m / 2 0 2 3 ( A . Y . 2 0 1 8 - 1 9 ) Dy. CIT vs. Geekay Facility Management Private Limited decision of Hon'ble Jurisdictional High Court of Bombay. It was held that delayed deposit of employee’s contribution is an allowable deduction as per the various decisions when the same has been filed before filing of the return of income. The Hon'ble Apex Court has settled the controversy vide order dated 12.10.2022 in the case of Checkmate Services P. Ltd. (supra) wherein it was held that the delayed deposit of employees contribution to PF & ESIC is not an allowable deduction. 3. The Revenue has filed the present MA to recall the order of the Tribunal based on the said decision. 4. We have heard the rival submissions and perused the materials available on record. It is observed that the issue of allowability of delayed deposit of employee’s contribution to PF & ESIC is no longer res integra as the Hon'ble Apex Court in its recent decision in the case of Checkmate Services P. Ltd. (supra) has held that the delayed deposit of employees contribution after the due date prescribed under the relevant Act but before filing of the return of income is not an allowable deduction u/s. 36(1)(va) of the Act. We are, therefore, inclined to recall the order of the Tribunal dated 29.07.2022 on this observation. 5. In the result, the Miscellaneous Application filed by the Revenue is allowed. Order pronounced in the open court on 03.11.2023. Sd/- Sd/- (Prashant Maharishi) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 03.11.2023 Roshani , Sr. PS 3 M A N o . 2 5 0 / M u m / 2 0 2 3 ( A . Y . 2 0 1 8 - 1 9 ) Dy. CIT vs. Geekay Facility Management Private Limited 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