ADIC (CPC) , BANGALORE V. SMT PREMSHEELA DEVI RANJEET SINGH, MUMBAI

MA 335/MUM/2022

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The case revolves around the issue of whether the employee's contributions to PF & ESI, if remitted beyond the due date prescribed under the respective acts but before the due date of filing of return of income under section 139(1) of the Income Tax Act, are eligible for deduction under section 43B of the Act. Initially, the Tribunal had decided this issue in favor of the assessee, relying on earlier Tribunal and High Court decisions. However, the Revenue's Miscellaneous Application brought attention to a subsequent Supreme Court decision which ruled in favor of the Revenue on this issue. Consequently, the Tribunal recalled its earlier order based on the new precedent set by the Supreme Court.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302546 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-01-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-01-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 17-11-2022
• Other Referred Cases: Kalpesh Synthetics Pvt. Ltd vs. DCIT, CIT vs. Ghatge Patil Transport Ltd., Checkmate Services Pvt. Ltd. vs.CIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC‘ BENCH MUMBAI BEFORE: SHRI M.BALAGANESH, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER MA No.335/Mum/2022 (Arising out of ITA No.2265/Mum/2021) (Asse ssment Year :2019-20) The Income Tax Officer- 28(2)(1) Room No.326, Tower No.6 Vashi Railway Station Vashi – 400 703 Vs. Smt. Premsheela Devi Ranjeet Singh 2 nd Floor, Gala No.202 Hasti Industrial premises Plot No.798, MIDC Area MIDC, Navi Mumbai – 400 710 PAN/GIR No.CZ NPS0590R (Appellant) .. (Respondent) Assessee by None Revenue by Smt.Vranda Matkari Date of Hearing 13/01/2023 Date of Pronouncement 31/01/2023 आदेश / O R D E R PER M. BALAGANESH (A.M): By virtue of this Miscellaneous Application, the Revenue seeks to recall the order passed by this Tribunal in ITA No.2265/Mum/2021 dated 24/05/2022. 2. None appeared on behalf of the assessee. We have heard the ld. DR and perused the materials available on record. We find that this Tribunal vide its order dated 24/05/2022 by placing reliance on the Co- MA No. 335/Mum/2022 Smt. Premsheela Devi Ranjeet Singh 2 ordinate Bench decision of this Tribunal in the case of Kalpesh Synthetics Pvt. Ltd vs. DCIT reported in 137 taxmann.com 475 dated 27/04/2022 and also by placing reliance on the decision of the Hon’ble Jurisdictional High Court in the case of CIT vs. Ghatge Patil Transport Ltd. reported in 368 ITR 749 had held that the employee’s contribution to PF & ESI even if remitted beyond the due date prescribed under the respective acts but remitted before the due date of filing of return of income u/s.139(1) of the Act would be eligible for deduction u/s.43B of the Act. Accordingly, the issue was decided in favour of the assessee. However, the Revenue in its Miscellaneous Application had drawn our attention to the recent decision of the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. vs.CIT reported in 143 taxmann.com 178 wherein the very same issue has been decided in favour of the Revenue. The law is very well settled that the subsequent decision of the Hon’ble Supreme Court would pave way for rectification of the order of the Tribunal u/s.254(2) of the Act. Accordingly, we find force in the Miscellaneous Application preferred by the Revenue in this regard. Hence, we deem it fit to recall the order passed by this Tribunal in ITA No.2265/Mum/2021 dated 24/05/2022 in its entirety. 3. In the result, Miscellaneous Application of the Revenue is allowed. Order pronounced on 31/01/2023 by way of proper mentioning in the notice board. Sd/- (PAVAN KUMAR GADALE) Sd/- (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated 31/01/2023 KARUNA, sr.ps MA No. 335/Mum/2022 Smt. Premsheela Devi Ranjeet Singh 3 Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. The CIT(A), Mumbai. 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. //True Copy//