ADIT CPC, BENGLURU V. SANJAY SUGANCHAND LODHA , MUMBAI

MA 370/MUM/2022

AI Insights

The case involves a Miscellaneous Application filed by the Revenue seeking to recall the Tribunal's order dated 27.05.2022, which had allowed the assessee's appeal regarding the disallowance made under section 36(1)(va) of the Income Tax Act, pertaining to the payment of employees' contributions to EPF and ESIC. The Revenue's application for recall was based on a subsequent decision by the Hon'ble Apex Court in the case of M/s. Checkmate Services Pvt. Ltd., which ruled that such contributions are not allowable as deductions if not deposited within the due date. The Tribunal, upon reviewing the materials and the Supreme Court's decision, decided to recall its earlier order and allowed the Revenue's application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299460 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-04-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 12-01-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 04-12-2022
• Other Referred Cases: M/s. Checkmate Services Pvt. Ltd. (in Civil Appeal No. 2833 of 2016)
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 22

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 . 3 70/ M u m/ 20 2 2 ( A r is i n g o u t o f IT A N o . 5 6/ M u m / 20 22 ) ( A s s e ss me nt Y ea r: 20 1 9- 20 ) ADIT CPC Income Tax Department Bengaluru- 560 500 Karnataka V s. Sanjay Suganchand Lodha Lodha Estate, Behind Mittal Inustrial Estate Building No.5, Marol Naka, Mumbai-400 059 P A N / G I R N o. AA A P L 7 04 3 G (Applicant) : (Respondent) Applicant by : Shri Vipul J. Shah Respondent by : Ms. Samruddhi Hande D a te o f H e a r i n g : 13.01.2023 D ate of P ro n ou n ce me n t : 13.04.2023 O R D E R Per Kavitha Rajagopal, J M: This Miscellaneous Application has been filed by the Revenue for recalling the Tribunal’s order in ITA No. 56/Mum/2022 dated 27.05.2022 for the A.Y. 2019-20, in light of the decision of the Hon'ble Apex Court in the case of M/s. Checkmate Services Pvt. Ltd. (in Civil Appeal No. 2833 of 2016 passed on 12.10.2022). 2. The brief facts of the case are that the Tribunal vide its order 27.05.2022 has allowed the assessee’s appeal challenging the disallowance made u/s. 36(1)(va), pertaining to deleted payment of employees contribution to EPF and ESIC. The Revenue has sought for recall of the said order on the basis of the decision of the Hon'ble Apex Court in the case of M/s. Checkmate Services Pvt. Ltd. (supra), wherein the said issue was decided against the assessee. 2 M A N o . 3 7 0 / M u m / 2 0 2 2 ( A . Y . 2 0 1 9 - 2 0 ) ADIT CPC vs. Sanjay Suganchand Lodha 3. We have heard the rival submissions and perused the materials available on record. It is observed that the Hon'ble Apex Court in the case of M/s. Checkmate Services Pvt. Ltd. (supra) has decided this issue against the assessee and, hence, we are inclined to recall the order on the basis of the decision of the Hon'ble Apex Court. 4. In the result, the Miscellaneous Application filed by the Revenue is allowed. Order pronounced in the open court on 13.04.2023. Sd/- Sd/- (Prashant Maharishi) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 13.04.2023 Roshani , Sr. PS 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