Income Tax Officer, Ward 3(2)(1), Mumbai, Mumbai V. Integrity Verification Services Private Limited, Mumbai

MA 430/MUM/2022

AI Insights

The case involves Integrity Verification Services Private Limited, which had initially filed a return declaring a loss for the Assessment Year 2018-19. The Assessing Officer made an addition to the loss declared by the company due to disallowance under section 36(1)(a) of the Income Tax Act, which was later contested and deleted by the Tribunal based on precedents from the High Court and Supreme Court. However, following a new Supreme Court decision in Checkmate Services Pvt. Ltd. vs. CIT-1, the Tribunal recalled its earlier order, reinstating the addition to the company's declared loss.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125468 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-03-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 16-02-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 22-12-2022
• Other Referred Cases: Checkmate Services Pvt. Ltd. vs. CIT-1, Alom Exclusion Ltd. [2009] 185 Taxman 460 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(1); 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI M BALAGANESH, AM AND MS. KAVITHA RAJAGOPAL, JM M A N o . 4 30/ M u m/ 2 0 2 2 (A ri s i n g ou t o f IT A N o. 18 43 / M u m/ 20 2 1) ( A s s e ss me nt Y ea r: 20 1 8- 19 ) ITO, Ward 3(2)(1) Mumbai V s. Integrity Verification Services Private Limited 11, Tulsani Chambers, Nariman Point, Mumbai-400 021 P A N / G IR N o. A A C CG 1 28 1 A (Applicant) : (Respondent) Applicant by : Shri Gyaneshwar Kataram Respondent by : Shri Manoj Kumar Singh D a te o f H e a r i n g : 17.02.2023 D ate of P ro n o u n c e me n t : 30.03.2023 O R D E R Per Kavitha Rajagopal, J M: This Miscellaneous Application has been filed by the Revenue for recalling the order of the Tribunal dated 28.04.2022 in ITA No. 1843/Mum/2021, relevant to the Assessment Year 2018-19. 2. The brief facts of the case are that the assessee company is engaged in the business of investigation and specialization in employee background, screening and risk investigation services. The assessee company filed its return of income on 05.10.2018 declaring total loss at Rs.83,53,130/- for the A.Y. 2018-19. The assessment was completed u/s. 143(1) of the Act on 11.01.2020 and intimation u/s. 143(1) was issued on 21.01.2010. Subsequent to this, the assessee company filed application u/. 154 on 2 M A N o . 4 3 0 / M u m / 2 0 2 2 ( A . Y . 2 0 1 8 - 1 9 ) ITO vs. Integrity Verification Services Private Limited 23.09.2020 and order u/s. 154 dated 20.10.2020 was passed by the Assessing Officer, CPC. Further to this notice u/s. 143(1)(a) dated 10.05.2019 was received with regard to disallowance of expenditure specified in the audit report that sum received from employees contribution to PF/superannuation fund or any fund set up under the ESIC Act/any other fund for the welfare of the employees as not credited to the employees account on or before the due date u/s. 36(1)(va). The reply of the assessee company to the A.O., CPC online was not accepted and total loss was calculated at Rs.78,24,230/- after making addition of Rs.5,28,900/- as disallowance u/s. 36(1)(a) of the Act. 3. Aggrieved, the assessee preferred an appeal before the ld. CIT(A) who confirmed the addition made by the A.O. 4. In an appeal before the Tribunal, the said addition was deleted following the decision of the Hon'ble Jurisdictional High Court and the Hon'ble Apex Court decision in the case of Alom Exclusion Ltd. [2009] 185 Taxman 460 (SC) vide order dated 28.04.2022. The Revenue has filed the present miscellaneous application for recalling the impugned order passed by the Tribunal in view of the recent decision of the Hon'ble Apex Court in the case of Checkmate Services Pvt. Ltd. vs. CIT-1 in Civil Appeal No. 2833 of 2016 dated 12.10.2022. 5. We have heard the rival submissions and perused the materials available on record. It is evident that the Hon'ble Apex Court in the case of Checkmate Services Pvt. Ltd. (supra) has decided the issue of delayed payment of provident fund and Employees State Insurance Corporation towards employee’s contribution against the assessee. In 3 M A N o . 4 3 0 / M u m / 2 0 2 2 ( A . Y . 2 0 1 8 - 1 9 ) ITO vs. Integrity Verification Services Private Limited light of the said decision, we hereby deem it fit to recall the order passed by the Tribunal in ITA No. 1843/Mum/2021 for the impugned year. 6. In the result, the Miscellaneous Application filed by the Revenue is allowed. Order pronounced in the open court on 30.03.2023 Sd/- Sd/- (M. Balaganesh) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 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