DY CIT CPC, BENGALURU/ MUMBAI V. SOLUTION MANPOWER & MEDIA PVT. LTD, MUMBAI

MA 45/MUM/2023

AI Insights

The case involves the Deputy Commissioner of Income Tax (DCIT) as the appellant and Solution Manpower & Media Pvt. Ltd. as the respondent. The dispute centered on the disallowance of an employee's contribution to the provident fund amounting to Rs 3,20,196 for the assessment year 2017-18. Initially, the Tribunal had allowed the appeal of the assessee, deleting the disallowance based on a previous decision. However, the DCIT filed a miscellaneous application citing a Supreme Court decision that mandated the disallowance if the contributions were not made within the prescribed due dates. The Tribunal, after considering the merits and the Supreme Court's decision, recalled its earlier order and confirmed the disallowance.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299462 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 16-03-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 16-01-2023
• Other Referred Cases: Kalpesh Synthetics Pvt. Ltd. Vs DCIT, Checkmate Services Pvt. Ltd. Vs CIT
• Laws Referred To: Provident Fund Act
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI KAVITHA RAJAGOPAL, JM MA NO. 45/MUM/2023 (Assessment Year: 2017-18) Arising Out of ITA No. 2577/Mum/2021 & ITA No. 2577/Mum/2021 DCI T, CP C Inc om e Tax Of f icer W ard- 13( 2) ( 1) , Mahar is hi K ar v e R d, N ew Mar i ne Lines, Churc hgat e, Mum bai-400020 Vs. Solution Manpower & Media Pvt. Ltd. F-201, Pranay Nagar, Vazir Naka, Borealis West, Mumbai-400092 (Appellant) (Respondent) PAN No. AARCS9744F Assessee by : None Revenue by : Shri Soumendu Kumar Date of hearing: 17.03.2023 Date of pronouncement : 13.06.2023 O R D E R PER PRASHANT MAHARISHI, AM: 1. This MA 45/Mum/2023 is filed by the Deputy Commissioner of Income Tax in ITA No. 2577/Mum/2021 for assessment year 2017-18 wherein the coordinate bench has allowed the appeal of the assessee in deleting the disallowance of employee’s contribution of Rs 3,20,196/- following the decision of co-ordinate bench in the case of Kalpesh Synthetics Pvt. Ltd. Vs DCIT. Page | 2 MA NO. 45/MUM/2023 SOLUTION MANPOWER & MEDIA PVT. LTD 2. In MA The Ld. AO has stated that in view of the decision of the Hon’ble Supreme Court in case of M/s Checkmate Services Pvt. Ltd. Vs CIT [2022] 143 taxmann.com 178 (SC)/wherein it has been held that if the employee’s contribution has not been paid before due date prescribed under respective Provident Fund Act, the disallowance is to be made. As the assessee has paid employee’s contribution to provident fund of Rs. 3,61,806/- beyond the specified due date of the P F Act, the order of the co- ordinate bench suffers from the mistake and is to be recalled. 3. Despite the notice, none appeared on behalf of the assessee, and therefore, this miscellaneous application filed by the AO is decided on merits of the case. 4. The Ld. Departmental Representative reiterated whatever is stated in the miscellaneous application. He also referred to several orders of the co-ordinate bench wherein on identical facts and circumstances where ITAT has allowed the issue in favor of the assessee by deleting the disallowance, such orders were recalled on the miscellaneous application filed by the revenue. 5. We have carefully considered contention of the departmental representative. We have also perused several orders of the coordinate benches. Accordingly, we find that the disallowance made by the CPC is in consonance with the decision of Hon’ble Supreme Court in Page | 3 MA NO. 45/MUM/2023 SOLUTION MANPOWER & MEDIA PVT. LTD the case of Checkmate Services Pvt Ltd 2022] 143 taxmann.com 178 (SC). Accordingly, we recall the order in ITA No. 2577/Mum/2021 for assessment year 2017-18 dated 07.07.2022 to the extent the employee’s contribution of provident fund deposited beyond due dates of P F Act amounting to Rs 3,20,196/- to be decided. Accordingly, the miscellaneous application filed by the revenue is allowed. ITA No. 2577/Mum/2021 6. As in the case of the issue in the appeal is squarely covered against the assessee by the decision of Hon’ble Supreme Court in the case of Checkmates Services Pvt. Ltd. Vs CIT dated 12.10.2022 [2022] 143 taxmann.com 178 (SC)/, we decide the issue in the recalled appeal against the assessee and confirm the disallowance to that extent. 7. Accordingly, ITA No. 2577 so recalled is also dismissed. Order pronounced in the open court on 13.06.2023. Sd/- Sd/- (KAVITHA RAJAGOPAL) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated: 13.06.2023 ANIKET SINGH RAJPUT, STENO Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, Mumbai Page | 4 MA NO. 45/MUM/2023 SOLUTION MANPOWER & MEDIA PVT. LTD 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai Sr. No. Particulars Date Initials Person concern ed 1 Draft dictated Sr.PS 2 Draft placed before author Sr.PS 3 Draft proposed & placed before the second Member AM 4 Draft discussed/approved by Second Member AM 5 Approved Draft comes to the Sr.PS/PS Sr.PS 6 Kept for pronouncement on Sr.PS 7 File sent to the Bench Clerk Sr.PS 8 Date on which file goes to the Head Clerk 9 Date of dispatch of Order 10 Dictation Sheet is attached herewith