Prowiz Mansystems Private Limited, Meerut V. DCIT CPC, Bengaluru

MA 451/DEL/2022

AI Insights

The case involves Prowiz Mansystems Pvt. Ltd., the appellant, contesting an adjustment made by the Centralized Processing Center (CPC) amounting to Rs.3,97,41,559 under section 143(1) of the Income Tax Act. This amount included Rs.2,09,34,833 for the employer's contribution and Rs.1,88,06,726 for the employee's contribution to the provident fund. The CIT(A) upheld the CPC's adjustment. The Tribunal's decision focused on the taxability of the employer's contribution, referencing the Supreme Court's ruling in Checkmate Services P. Ltd. vs. Commissioner Of Income Tax-I, which clarified the tax treatment of such contributions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 116436 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 11-05-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 21-12-2022
• Other Referred Cases: Checkmate Services P. Ltd. vs. Commissioner Of Income Tax-I
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHUPENDER SINGH ANANT

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI Before Sh. Saktijit Dey, Vice President Dr. B. R. R. Kumar, Accountant Member MA No. 451/Del/2022 (In ITA No. 817/Del/2021 : Asstt. Year: 2018-19) Prowiz Mansystems Pvt. Ltd., C/o AKJ & Associates, CA FF, Deep Complex, Begum Bridge Road, Meerut, U.P. – 250001 Vs. DCIT, CPC, Bengaluru (APPELLANT) (RESPONDENT) PAN No. AACCP5937C Assessee by : Sh. M. P. Rastogi, Adv. Revenue by : Sh. Bhupender Singh Anant, Sr. DR Date of Hearing: 12.05.2023 Date of Pronouncement: 31.07.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The relevant facts are as under:  The CPC made adjustment of Rs.3,97,41,559/- u/s 143(1).  The ld. CIT(A) confirmed the same.  The assessee submitted that the amount of Rs. 3,97,41,559/- consists of an amount of Rs.2,09,34,833/- on account of Employers Contribution and Rs.1,88,06,726/- on account of Employees Contribution.  The amount of employers contribution is to be taxed as income of the assessee as per the judgment of the Hon’ble Supreme Court in the case of Checkmate Services P. Ltd. vs. Commissioner Of Income Tax-I in CA No. 2833/2016 vide order dated 12.10.2022. MA No. 451/Del/2022 Prowiz Mansystems Pvt. Ltd. 2 2. Hence, the AO is hereby directed to compute the disallowance after verification as mentioned above and issue revised demand notice. 3. In the result, the Miscellaneous Application of the assessee is allowed. Order Pronounced in the Open Court on 31/07/2023. Sd/- Sd/- (Saktijit Dey) (Dr. B. R. R. Kumar) Vice President Accountant Member Dated: 31/07/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR