ACIT CIRCLE 17(3) , MUMBAI V. STERLING MOTORS, MUMBAI

MA 372/MUM/2022

AI Insights

The case involves the Income Tax Department (Revenue) seeking to recall a Tribunal order that had previously favored Sterling Motors, the respondent, in a dispute concerning the disallowance of employees' contributions to EPF and ESIC under section 36(1)(va) of the Income Tax Act. The initial Tribunal decision was based on interpretations that were later contradicted by a Supreme Court ruling in M/s. Checkmate Services Pvt. Ltd., which led the Revenue to file a Miscellaneous Application for recall of the Tribunal's order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299461 (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: misc
• 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: 13

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 72/ M u m/ 20 2 2 ( A r i s in g ou t o f IT A N o . 1 /M u m/ 2 02 2 ) ( A s s e ss me nt Y ea r: 20 1 8- 19 ) ADIT Circle 17(3) 117, Kautilya Bhavan, BKC, Bandra East, Mumbai-400 051 V s. Sterling Motors 46-A, Veetrag Chambers, Cawasiji Patel Street, Fort, Mumbai-400 011 P A N / G I R N o. AA CF S 45 13 L (Applicant) : (Respondent) Applicant by : Shri Ryan Saldanha 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. 01/Mum/2022 vide order dated 25.05.2022 for the A.Y. 2018-19 passed 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 25.05.2022 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 2 / M u m / 2 0 2 2 ( A . Y . 2 0 1 8 - 1 9 ) ADIT vs. Sterling Motors 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