ADIT . CPC, BANGALORE V. M/S. RICH PRODUCTS & SOLUTIONS PVT. LTD, MUMBAI

MA 384/MUM/2022

AI Insights

The case involves the Deputy Commissioner of Income Tax (DCIT) as the appellant and M/s. Rich Products & Solutions Pvt. Ltd. as the respondent. The core issue was whether the employee's contributions to PF & ESI, if remitted beyond the prescribed due date but before the due date of filing the return of income under section 139(1), are eligible for deduction under section 43B of the Income Tax Act. Initially, the Tribunal had decided in favor of the assessee based on earlier decisions. However, following a Supreme Court decision that favored the Revenue's stance, the Tribunal recalled its earlier order and scheduled a new hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302385 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-02-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 02-02-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 11-12-2022
• 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, ‘E‘ BENCH MUMBAI BEFORE: SHRI M.BALAGANESH, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER MA No.384/Mum/2022 (Arising out of ITA No.2250/Mum/2021) (Asse ssment Year :2019-20) The DCIT-8(1)(1) Room No.624, 6 th Floor Aaykar Bhavan M.K.Road, Mumbai – 400 020 Vs. M/s. Rich Products & Solutions Pvt.Ltd. (Earlier known as Rich Graviss Products Pvt.Ltd) 7 th Floor, Fair Link Centre B Wing, New Link Road, Behind Monchinies Cake Factory, Andheri West Mumbai – 400 058 PAN/GIR No.AABCR 3402K (Appellant) .. (Respondent) Assessee by None Revenue by Ms. Richa Gulati Date of Hearing 03/02/2023 Date of Pronouncement 03/02/2023 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. 2250/Mum/2021 dated 19/05/2022. 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 19/05/2022 by placing reliance on the Co- MA No. 385/Mum/2022 M/s. Salasar Balajiship Breakers Pvt. Ltd. 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.2250/Mum/2021 dated 19/05/2022 in its entirety and direct the Registry to fix the main appeal for hearing on 27/03/2023. 3. In the result, Miscellaneous Application of the Revenue is allowed. Order pronounced on 03/02/2023 by way of proper mentioning in the notice board. Sd/- (PAVAN KUMAR GADALE) Sd/- (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated 03/02/2023 KARUNA, sr.ps MA No. 385/Mum/2022 M/s. Salasar Balajiship Breakers Pvt. Ltd. 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//