Aztec Shiva Handicrafts & Arts Pvt. Ltd., JODHPUR V. ACIT, JODHPUR

MA 4/JODH/2023

AI Insights

The case involves Aztec Shiva Handicrafts & Arts Pvt Ltd., which filed a miscellaneous application seeking rectification of an earlier Tribunal order concerning the disallowance of employee contributions to PF and ESI for the assessment year 2015-16. Initially, these contributions were allowed in the assessment under section 143(3) but were later disallowed in rectification proceedings under section 154. The Tribunal's earlier order mistakenly reflected the sequence of these events. The Tribunal corrected this error in their recent decision, acknowledging the contributions were disallowed in the rectification proceedings and not at the initial assessment stage.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302561 (ITAT-JODHPUR)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 06-08-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 31-05-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 154; 143(3); 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, “ DB” BENCH, JODHPUR BEFORE SHRI PAVAN KUMAR GADALE, JUDICIALMEMBER & SHRI DR DIPAK P. RIPOTE, ACCOUNTANT MEMBER M.A. No. 04/JODH/2023 (Arising out of ITA No. 161/JODH/2022, A.Y.2015-16) Aztec Shiva handicrafts & Arts Pvt Ltd., E-589-595, Epip Ind. Area, Boranada, Jodhpur -342021. Rajasthan. Vs. ACIT, Circle – 3 Jodhpur-342001 Rajasthan. लेख सं./ज आइआर सं.PAN/GIR No. AACCA3071E ( ल /Applicant) ( /Respondent) Applicant by Shri. T.L Jain, CA Respondent by Ms. Nidhi Nair, JCIT - DR स ु नव ई र ख/Date of Hearing 07.08.2023 घोषण र ख/Date of Pronouncement 09.08.2023 ORDER PER PAVAN KUMAR GADALE, JM: The assessee has filed the miscellaneous application (MA) in ITA No. 161/JODH/2022 for the A.Y. 2015-16 seeking rectification in the Hon’ble Tribunal order. 2 M.A. No. 04/JODH/2023 (A.Y.: 2015-16) 2. At the time of hearing, the Ld. AR submitted that the Hon’ble Tribunal in the order dated 13.03.2023 at Para 3 has observed as under: “ 3. Briefly the facts of the case are that the assessee filed its return income on 29.09.2015 declaring total income of Rs. 98,53,860/- which was processed U/s 143(3) of the Income Tax Act it made disallowance of Rs. 3,54,886/- towards employee's contribution towards ESI and PF. On appeal, the Id CIT(A), NFAC has confirmed the disallowance made U/s 143(3) on account of assessee's failure to pay the employee's contribution of PF/ESI within the prescribed due dates as per section 36(1)(va) of the Act." 3. Whereas the original assessment was completed u/s 143(3) of the Act vide order dated 10.08.2017 were the ESI and PF contribution of Rs. 3,64,884/-paid after the due dates under respective Acts but before the due date u/s 139(1) of the Act was allowed as a deduction. Subsequently, the A.O has invoked provisions under section 154 of the Act and disallowed the claim of ESI & PF and passed the order of rectification on 29.04.2021. And we modify the observations of the Hon’ble Tribunal at page 2 Para 3 to be read as under: 3. Briefly the facts of the case are that the assessee filed its return income on 29.09.2015 declaring total income of Rs. 98,53,860/- which was processed U/s 143(3) of the Income Tax Act..The claim of the assessee of employee contribution towards PF and ESI of Rs. 3,64,884/- was allowed and subsequently in rectification proceedings u/s 154 of the Act the claim was disallowed by the Assessing officer. On 3 M.A. No. 04/JODH/2023 (A.Y.: 2015-16) appeal, the Id CIT(A), NFAC has confirmed the disallowance made U/s 154 of the Act on account of assessee's failure to pay the employee's contribution of PF/ESI within the prescribed due dates as per section 36(1)(va) of the Act." 4. Accordingly, with the above directions the miscellaneous application filed by the assessee is allowed. Order pronounced in the open court on 09.08.2023. Sd/- Sd/- (DIPAK P. RIPOTE) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Jodhpur, Dated: 09/08/2023 KRK Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, Jodhpur 6. Guard file. //True Copy// BY ORDER, (Dy./Asstt. Registrar)ITAT, Jodhpur