ITO WD 3(3)(1), MUMBAI V. VERITAS INFRATECH PVT. LTD., MUMBAI

MA 364/MUM/2022

AI Insights

The case involves the Income Tax Department (Appellant) against Veritas Infratech Pvt. Ltd. (Respondent) concerning the deduction of employee's contributions to PF/ESIC which were deposited beyond the due date but before the due date for filing the income tax return. Initially, the deductions were allowed based on precedents from the Bombay High Court. However, following a Supreme Court decision, which mandated strict adherence to the statutory due dates for such deposits, the ITAT recalled its earlier order and set the case for a new hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130295 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-01-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 05-01-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 29-11-2022
• Other Referred Cases: CIT(A) Vs. Hindustan Organic Chemicals Ltd., Ghatge Patil Transport Ltd., Checkmate Services Pvt. Ltd.
• Laws Referred To: PF/ESIC Act, CIT(A) Vs. Hindustan Organic Chemicals Ltd. (2014) 366 ITR 1 (Bom), Ghatge Patil Transport Ltd. (2014) 368 ITR 249 (Bom), Checkmate Services Pvt. Ltd. civil appeal no. 2833 of 2016 dated 12.10.2022
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

P a g e | 1 M.A.Nos. 363 & 364/Mum/2022 The ACIT, Circle-3(3)(1) Vs. Veritas Infratech Pvt. Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER M.A. Nos.363 & 364/Mum/2022 (Arising out of ITA Nos.2456 & 2457/Mum/2021) (A.Ys. 2018-19 & 2019-20) The ACI T, Circle-3(3)(1) Room No. 609, 6 th Floor, Aayakar Bhavan, Mumbai Vs. Veritas Infratech Pvt. Ltd. 8 th Floor, K. Raheja Prime Sagbaug Road, Off, Andheri Kurla Road, Marol, Andheri (East) Mumbai - 500059 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAFCV0393R Appellant .. Respondent Appellant by : Mahita Nair Respondent by : Ajay R. Singh & Akshay Pawar Date of Hearing 06.01.2023 Date of Pronouncement 18.01.2023 आदेश / O R D E R Per Amarjit Singh (AM): These two Miscellaneous Application Nos. 363 and 364/Mum/2022 are directed against the combined order of the ITAT for assessment year 2018-19 and 2019-20 passed on 12.05.2022 vide ITA No. 2456 & 2457/Mum/2021. 2. Vide Miscellaneous Application dated 30.11.2022 as referred above, the revenue submitted that the claim of assesse with respect to deduction pertaining to the amount deposited towards employee’ contribution to PF/ESIC beyond the due date for payment as specified P a g e | 2 M.A.Nos. 363 & 364/Mum/2022 The ACIT, Circle-3(3)(1) Vs. Veritas Infratech Pvt. Ltd. in PF/ESIC Act, was allowed on the ground that same was remitted within the due date for filing the return of income after following the decision of Hon’ble jurisdictional High Court in the case of CIT(A) Vs. Hindustan Organic Chemicals Ltd. (2014) 366 ITR 1 (Bom) and decision of Ghatge Patil Transport Ltd. (2014) 368 ITR 249 (Bom). 3. In this regard, it is submitted that the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. Vide civil appeal no. 2833 of 2016 dated 12.10.2022, held that employers have to deposit the employee’s contribution towards EPF/ESI on or before the due date as specified in the relevant act. 4. In view of the decision of Hon’ble Supreme Court as referred supra we recall the order dated 12.05.2022 common for both the appeals i.e ITA No. 2456 & 2457/Mum/2021 and direct the registry to list these cases for hearing on merit in due course after apprising both the parties. Therefore, the miscellaneous applications of the revenue are allowed for statistical purpose. 3. In the result, the miscellaneous applications of the revenue are allowed for statistical purposes. Order pronounced in the open court on 18.01.2023 Sd/- Sd/- (Vikas Awasthy) (Amarjit Singh) Judicial Member Accountant Member Place: Mumbai Date 18.01.2023 Rohit: PS P a g e | 3 M.A.Nos. 363 & 364/Mum/2022 The ACIT, Circle-3(3)(1) Vs. Veritas Infratech Pvt. Ltd. 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.