ADIT , CPC , BENGALURU V. M/S AUTOTECH INDUSTRIES [ INDIA ] PRIVATE LIMITED , CHENNAI

MA 27/CHNY/2023

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The case involves a Miscellaneous Petition filed by the Revenue against the order of the Income Tax Appellate Tribunal, which initially allowed certain deductions for payments made to employees' contributions to PF & ESI. The Revenue contended that these payments were made beyond the due dates specified under the respective Acts, although within the due date for filing income tax returns. The Tribunal referenced a similar case (ACIT Vs. M/s. Sree Gokulam Chit and Finance Co. P. Ltd.) where the Supreme Court's decision in Checkmate Services P. Ltd. Vs CIT was applied, leading to the conclusion that such payments should be disallowed if made after the statutory due dates. The Tribunal set aside its earlier decision and remanded the issue back to the Assessing Officer for verification of the actual payment dates.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132035 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-08-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-08-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 09-01-2023
• Other Referred Cases: ACIT Vs. M/s. Sree Gokulam Chit and Finance Co. P. Ltd., Checkmate Services P. Ltd. Vs CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: B.RAMAKRISHAN
• Section: 20

Judgement Text

aआयकर अपील य अ धकरण, ‘ए ’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘A’ BENCH, CHENNAI ी महावीर संह, उपा य एवं ी जी. मंज ु नाथ, लेखा सद%य के सम BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER Misc. Petition N o. 2 7 / C hn y/ 2 0 2 3 (In ITA No. 5 0 0/ C h n y/ 2 0 2 2) ( नधा रणवष / As s e s s m en t Ye a r : 20 20 - 2 1) The Joint Commissioner of Income Tax (OSD), Corporate Circle-1(1) Chennai. V s M/s. Autotech Industries (India) Pvt.Ltd SP-114, Ambattur Industrial Estate, Chennai-600 058. PAN: AABCA 9902B (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : Mr. AR.V. Sreenivasan, Addl.CIT यथ क ओरसे/Respondent by : Mr. B.Ramakrishan, CA स ु नवाईक तार%ख/D a t e o f h e a r i n g : 04.08.2023 घोषणाक तार%ख /D a t e o f P r o n o u n c e m e n t : 04.08.2023 आदेश / O R D E R PER G.MANJUNATHA, AM: This Miscellaneous Petition filed by the Revenue is directed against the order of this Tribunal dated 21.07.2022 in ITA No.500/Chny/2022 relevant to the assessment year 2020- 21. 2. We have heard rival submissions and considered Miscellaneous Application filed by the Revenue u/s.254(2) of the Income Tax Act, 1961 in regard to disallowance of payments made to employees’ contribution to PF & ESI beyond due date specified under respective Acts, but within due date 2 Misc.Petition No. 27/Chny/2023 for filing of return of income u/s.139(1) of the Act. We find that co-ordinate Bench of this Tribunal has passed an order dated 31.07.2023 in the case of ACIT Vs. M/s. Sree Gokulam Chit and Finance Co. P. Ltd. in M.A Nos. 97/Chny/2022 & 11/Chny/2023, wherein application of Revenue has been allowed and issue on merits has been decided against the assessee, in light of decision of the Hon’ble Supreme Court in the case of Checkmate Services P. Ltd. Vs CIT reported in 143 Taxmann.com 178 dated 12.10.2022. 3. Therefore, considering above facts, we are of the considered view that there is mistake apparent on record in the order of this Tribunal, which needs to be rectified u/s.254(2) of the Act, and thus, we deem it appropriate to recall order of this Tribunal dated 21.07.2022 in ITA No.500/Chny/2022. Further, claim of the learned counsel for the assessee is that in the present case, the delay is on account of certain glitches in the EPFO portal and because of this, even though, the assessee has remitted employees contribution within the due date specified under respective Act, challan has been generated after the due date. Therefore, the counsel submitted that these 3 Misc.Petition No. 27/Chny/2023 facts may be verified by the learned Assessing Officer before allowing deduction for payment to PF. We find that the assessee has filed certain e-mail communication between EPFO and the assessee and argued that due to EPFO server problem, challan has been generated after due date and these facts need to be verified by the Assessing Officer. We therefore, set aside the issue back to file of the learned Assessing Officer and direct the Assessing Officer to verify payment of employees’ contribution to PF & ESI in light of due date specified under respective Act and in case, there is delay, the same maybe disallowed in light of decision of the Hon'ble Supreme Court in the case of Checkmate Services P. Ltd. Vs CIT (supra). The order of Tribunal stands modified accordingly. 4. In the result, Miscellaneous Application filed by the Revenue is treated as allowed statistical purposes. Order pronounced in the open court on 4 th August, 2023 Sd/- Sd/- ( महावीर संह ) ( जी. मंज ु नाथ ) (Mahavir Singh) (G. Manjunatha ) उपा य / Vice-President लेखा सद+य / Accountant Member चे-नई/Chennai, .दनांक/Dated 4 th August, 2023 DS 4 Misc.Petition No. 27/Chny/2023 आदेश क त2ल3प अ4े3षत/Copy to: 1.Appellant 2. Respondent 3. आयकर आय ु 5त/CIT 4. 3वभागीय त न8ध/DR 5. गाड फाईल/GF.