DCIT, BENGALURU V. R.RAMAKRISHNAN, TIRUPUR

MA 45/CHNY/2023

AI Insights

The case involves a Miscellaneous Petition filed by the Revenue against an earlier order of the Income Tax Appellate Tribunal concerning the disallowance of payments made to employees' contributions to PF & ESI. Initially, the Tribunal's decision was in favor of the assessee, but upon reviewing the Supreme Court's decision and a similar case decided by a co-ordinate Bench, the Tribunal found a mistake apparent on record and rectified its earlier order. The Tribunal directed the Assessing Officer to disallow the late payments of Employees' Contribution to PF/ESI which were not deposited within the due dates specified under the respective Acts.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127426 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-08-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-08-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 30-01-2023
• Other Referred Cases: ACIT Vs. M/s. Sree Gokulam Chit and Finance Co. P. Ltd., Checkmate Services P. Ltd. Vs CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

आयकर अपील य अ धकरण, ‘ए ’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘A’ BENCH, CHENNAI ी महावीर संह, उपा य एवं ी जी. मंज ु नाथ, लेखा सद%य के सम BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER Misc. Petition N o. 4 5 / C hn y/ 2 0 2 3 (In ITA No. 5 1 3/ C h n y/ 2 0 2 2) ( नधा रणवष / As s e s s m en t Ye a r : 20 18 - 1 9) The Deputy Commissioner of Income Tax, Circle-1 Tirupur. V s Mr. R.Ramakrishnan, 28/51, Sheriff Colony Main Road, Tirupur-641 604. PAN: ACFPR 3945Q (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : Mr. AR.V. Sreenivasan, Addl.CIT यथ क ओरसे/Respondent by : Mr. H.Yeshwanth Kumar, C.A स ु नवाईक तार%ख/D a t e o f h e a r i n g : 04.08.2023 घोषणाक तार%ख /D a t e o f P r o n o u n c e m e n t : 04.08.2023 आदेश / O R D E R PER G.MANJUNATHA, AM: This Miscellaneous Petition filed by the Revenue is directed against the order of this Tribunal dated 21.07.2022 in ITA No.513/Chny/2022 relevant to the assessment year 2018- 19. 2. We have heard rival submissions and considered Miscellaneous Application filed by the Revenue u/s.254(2) of the Income Tax Act, 1961 in regard to disallowance of payments made to employees’ contribution to PF & ESI beyond due date specified under respective Acts, but within due date 2 Misc.Petition No. 45/Chny/2023 for filing of return of income u/s.139(1) of the Act. We find that co-ordinate Bench of this Tribunal has passed an order dated 31.07.2023 in the case of ACIT Vs. M/s. Sree Gokulam Chit and Finance Co. P. Ltd. in M.A Nos. 97/Chny/2022 & 11/Chny/2023, wherein application of Revenue has been allowed and issue on merits has been decided against the assessee, in light of decision of the Hon’ble Supreme Court in the case of Checkmate Services P. Ltd. Vs CIT reported in 143 Taxmann.com 178 dated 12.10.2022. 3. Therefore, considering above facts, we are of the considered view that there is mistake apparent on record in the order of this Tribunal, which needs to be rectified u/s.254(2) of the Act, and thus, we deem it appropriate to recall order of this Tribunal dated 21.07.2022 in ITA No.513/Chny/2022. Further, in light of decision of the Hon'ble Supreme Court in the case of Checkmate Services P. Ltd. Vs CIT (supra) and also by following decision of the co-ordinate Bench of this Tribunal dated 31.07.2023 in the case of ACIT Vs. M/s. Sree Gokulam Chit and Finance Co. P. Ltd. (supra), we modify the impugned order against the assessee and the learned Assessing Officer is directed to recompute income of assessee by disallowing late 3 Misc.Petition No. 45/Chny/2023 payment of Employees’ Contribution to PF / ESI which have been deposited beyond due date as specified in respective ESI / PF Acts. The order of Tribunal stands modified accordingly. 4. In the result, Miscellaneous Application filed by the Revenue is treated as allowed in terms of our observations hereinabove. Order pronounced in the open court on 4 th August, 2023 Sd/- Sd/- ( महावीर संह ) ( जी. मंज ु नाथ ) (Mahavir Singh) (G. Manjunatha ) उपा य / Vice-President लेखा सद+य / Accountant Member चे-नई/Chennai, .दनांक/Dated 4 th August, 2023 DS आदेश क त2ल3प अ4े3षत/Copy to: 1.Appellant 2. Respondent 3. आयकर आय ु 5त/CIT 4. 3वभागीय त न8ध/DR 5. गाड फाईल/GF.