VISA CONSOLIDATED SUPPORT SERVICES (INDIA) PVT. LTD, MUMBAI V. CENTRALISED PROCESSING CENTER, BENGALURU

MA 357/MUM/2022

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The case revolves around an appeal by Visa Consolidated Support Services (India) Pvt. Ltd. against the Centralised Processing Center (CPC) regarding the disallowance of INR 35,281,563 related to the delayed remittance of employee's contribution towards provident fund for the Assessment Year 2019-20. The primary contention was whether the remittance was made within the prescribed due date. The Tribunal had initially overlooked this specific ground in their earlier judgment but upon the assessee's application, the matter was recalled and adjudicated. The Tribunal found that the remittance was indeed made within the due date as per the Employees Provident Fund Act, 1952, leading to the allowance of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130293 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 16 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 05-01-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 27-11-2022
• Laws Referred To: Employees Provident Funds Scheme, 1952, Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 32

Judgement Text

P a g e | 1 M.A. No.357/Mum/2022 Visa Consolidated Support Services (India) Pvt. Ltd. Vs. Centralised Processing Center CPC IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER M.A. No.357/Mum/2022 ITA No.2454/Mum/2021 (Arising out of ITA No.2454/Mum/2021) (A.Y. 2019-20) Visa Consolidated Support Services (India) Pvt. Ltd. 1702, A Wing, The Capital, 17 th Floor, C-70, G-Block, BKC, Bandra (East) Mumbai – 400051 Vs. Centralised Processing Center CPC Bengaluru – 560500 Karnataka स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACV9394F Appellant .. Respondent Appellant by : Anish Thacker & Hemen Chandaria Respondent by : Mahita Nair Date of Hearing 06.01.2023 Date of Pronouncement 13.01.2023 आदेश / O R D E R Per Amarjit Singh (AM): Vide Miscellaneous Application No. 357/Mum/2022 the assessee submitted that while adjudicating its appeal by the ITAT vide ITA No.2454/Mum/2021 on 12.05.2022 the ground of appeal no. 2(b) was remained to be adjudicated. In this regard, the ld. Counsel referred the Form No. 36 of appeal to the appellate Tribunal dated 22.12.2021 as per which the assesse has submitted ground of appeal vide serial no 2(b) as under: “1. Erred in not granting an opportunity of being heard to VCSSI and passing an order against the principles of natural justice. P a g e | 2 M.A. No.357/Mum/2022 Visa Consolidated Support Services (India) Pvt. Ltd. Vs. Centralised Processing Center CPC 2. Erred in disallowing an amount of INR 35,281,563 in relation to delayed remittance of employee's contribution towards provident fund based on section 2(24)(x) of the Act read with section 36(1)(va) of the Act. In this regard, the learned CIT(A) has erred on the following: a) Not considering the fact that the said surn was remitted within the due date of filing the Return of Income (ROI) for AY 2019-20, i.e., 30 November 2019. b) Not appreciating the fact that tax auditor has inadvertently considered the payment of provident fund contribution for the Month of March 2019 of INR 34,325,502 as payment made for the month of February 2019 and accordingly mentioned the due date as 15 March 2019 instead of 15 April 2019 in clause 20b of the tax audit report.” 2. After hearing both side and perusal of the record, it is found that above referred ground no. 2(b) filed by the assesse was remained to be adjudicated. Therefore, the impugned order is recalled to adjudicate the ground no. 2(b) filed by the assesse. Therefore, the miscellaneous application of the assesse is allowed. 3. The ground No. 2(b) filed by the assesse is adjudicated as follows. In this respect the ld. Counsel submitted that tax auditor has inadvertently considered the due date for the payment of employee’s contribution towards provident fund for the month of March, 2019 for Rs.3,43,25,502/- as payment made for the month of February, 2019 instead of correct due date of 15.04.2019 as prescribed in the Employees Provident Fund Scheme 1952. With the assistance of ld. Representatives we have perused the provision of Section 32 of the Employee’s Provident Funds Scheme, 1952 Act in respect of mode of payment of contribution as reproduced as under: “38. Mode of payment of contributions: (1) The employer shall, before paying the member his wages in respect of any period or part of period for which contributions are payable, deduct the employee's contribution from his wages which together with his own contribution as well as an administrative charge of such percentage [of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon) for the time being payable to the employees other than excluded employee and in respect of which provident fund contribution payable, as the Central Government may fix. He shall within fifteen days of the close of every month pay the same to the fund [electronic through internet banking of the State Bank of India or P a g e | 3 M.A. No.357/Mum/2022 Visa Consolidated Support Services (India) Pvt. Ltd. Vs. Centralised Processing Center CPC any other Nationalized Bank] [or through PayGov platform or through scheduled banks in India including private sector banks authorized for collection on account of contributions and administrative charge:” In support of his claim the ld. Counsel has also referred copy of payment of challan in respect of monthly contribution for March, 2019 as reproduced as under: TRRN No. 2401904005407 Challan Status Payment Confirmed Challan Generated On 10 April 2019 12:38:26 Establishment ID: BGBNG0042140000 Establishment Name: VISA CONSOLIATED SUPPORT SERVICES (INDIA) PVT. LTD. Challan Type: Monthly Contribution Challan Total Members: 1286 Wage month: MAR -19 Total amount (Rs) 3,43,25,502 Account-1 Amount (Rs): 3,24,93,126 Account-2 Amount (Rs): 6,86,935 Account-10 Amount (Rs): 10,50,000 Account-21 Amount (Rs): 95,551 Account-22 Amount (Rs): 0 Payment Confirmation Bank: ICICI Bank CRN 229120419005356 Presentation Date: 12-APR-2019 00:00:00 Realization Date: 12-APR-2019 00:00:00 Date of Credit 12-APR-2019 00:00:00 4. The ld. Counsel has demonstrated from the copy of challan as reproduced above that impugned payment in respect of provident fund contribution of employees was made on 12.04.2019. Therefore, after taking into consideration the provision of provident fund Act 1952 as referred supra, we find force in the contention of the ld. Counsel that provident fund contribution for the month of the March was made within the due date as prescribed in the Employees Provident Fund Act, 1952 r.w. Employee’s Provident Fund Scheme 1952. Therefore, ground no. 2(b) of the assesse is allowed. 5. In the result, the appeal of the assesse is allowed. Order pronounced in the open court on 13.01.2023 Sd/- Sd/- (Vikas Awasthy) (Amarjit Singh) Judicial Member Accountant Member Place: Mumbai Date 13.01.2023 Rohit: PS P a g e | 4 M.A. No.357/Mum/2022 Visa Consolidated Support Services (India) Pvt. Ltd. Vs. Centralised Processing Center CPC आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. आयकर आयुक्त(अपील) / The CIT(A)- 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 6. गार्ड फाईल / Guard file. सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीिीय अतिकरण/ ITAT, Bench, Mumbai.