DCIT, Cen.Cir. 3(2), Kolkata V. M/s Secure Offset Pvt. Ltd., Howrah

MA 51/KOL/2022

AI Insights

The case revolves around the Deputy Commissioner of Income Tax, Central Circle \\u2013 3(2), Kolkata, versus M/s. Secure Offset Pvt. Ltd., concerning the assessment year 2018-19. The primary issue was the disallowance of deduction for the delayed deposit of employees' contributions to Provident Fund (PF) and Employees' State Insurance (ESI). Initially, the Tribunal had dismissed the revenue's appeal following a precedent set in Lumino Industries Ltd. vs. ACIT. However, subsequent to a Supreme Court decision in Checkmate Services (P.) Ltd., which reversed the earlier understanding and upheld the strict compliance requirement under the Income Tax Act, the Tribunal recalled its earlier order and dismissed the assessee's appeal, aligning with the Supreme Court's directive.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132621 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-04-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-01-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 01-12-2022
• Other Referred Cases: Lumino Industries Ltd. vs. ACIT, Circle-5(1), Kolkata, Checkmate Services (P.) Ltd. v. Commissioner of Income-tax-1
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: VARAT JAIN
• Section: 43B

Judgement Text

| आयकर अपीलीय अिधकरण ᭠यायपीठ, कोलकाता | IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI SANJAY GARG, HON’BLE JUDICIAL MEMBER & SHRI GIRISH AGRAWAL, HON’BLE ACCOUNTANT MEMBER M.A. No. 51/Kol/2022 A/o I.T.A. No. 607/Kol/2021 Assessment Year: 2018-19 Deputy Commissioner of Income Tax, Central Circle – 3(2), Kolkata Vs M/s. Secure Offset Pvt. Ltd. EW-3, Dhulagarh Sankrail Howrah - 711313 [PAN : AANCS9669P] I.T.A. No. 607/Kol/2021 Assessment Year: 2018-19 M/s. Secure Offset Pvt. Ltd. EW-3, Dhulagarh Sankrail Howrah - 711313 [PAN : AANCS9669P] Vs Deputy Commissioner of Income Tax, Central Circle – 3(2), Kolkata अपीलाथᱮ/ (Appellant) ᮧ᭜ यथᱮ/ (Respondent) Assessee by : Shri Varat Jain, C.A. Revenue by : Shri Vijay Kumar, Addl. CIT सुनवाई कᳱ तारीख/Date of Hearing : 20/01/2023 घोषणा कᳱ तारीख /Date of Pronouncement: 05/04/2023 आदेश/O R D E R PER SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER : By way of this miscellaneous application, revenue seeks to recall the order of the Tribunal in ITA No. 607/Kol/2021; dt. 7 th June, 2022, wherein the Tribunal had dismissed the appeal of the revenue involving the issue of employees’ contribution towards PF & ESI u/s. 36(1)(va) r.w.s. 2(24)(x) of the Act by following the order of this Tribunal in the case of Lumino Industries Ltd. vs. ACIT, Circle-5(1), Kolkata, in ITA No. 365/Kol/2021; Assessment Year 2015-16, order dt. 17/11/2021. 2. We find that the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. v. Commissioner of Income-tax-1 [2022] 143 taxmann.com 178 (SC), has held in favour of the revenue, that strict compliance with Section 36(1)(va) r.w.s. 2(24)(x) is a must to claim deduction and provisions of Section 43B of the Act M.A. No. 51/Kol/2022 A/o I.T.A. No. 607/Kol/2021 Assessment Year: 2018-19 & I.T.A. No. 607/Kol/2021 Assessment Year: 2018-19 M/s. Secure Offset Pvt. Ltd. 2 cannot be applied on employees’ contribution to PF & ESI and further held that the High Court rulings favouring the assessee had not laid down the correct law. 3. In view of the above, we deem it fit to recall the order of this Tribunal dt. 7 th June, 2022 and reinstitute the appeal in ITA No. 607/Kol/2021, for its disposal. 4. Now coming to ITA No. 607/Kol/2021, the sole issue involved in this appeal was relating to disallowance in respect of delay in deposit of employees’ contribution to Provident Fund, the issue is squarely covered against the assessee by the decision of Hon’ble Supreme Court in the case of Hon’ble Supreme Court in Chekmate Services Pvt. Ltd. Vs. CIT (2022) 143 taxmann.com 178 (SC) wherein it has been held that “deduction u/s 36(1)(va) in respect of delayed deposit of amount collected towards employees’ contribution to PF cannot be claimed when deposited within the due date of filing of return even when read with Section 43B of the Income-tax Act,1961.” Respectfully following the judgment of the Hon’ble Supreme Court we dismiss the reinstituted appeal of the assessee i.e., ITA No. 607/Kol/2021. 5. In the result, the miscellaneous application filed by the revenue is allowed and the appeal of the assessee is dismissed. Order pronounced in the Court on 5 th April, 2023 at Kolkata. Sd/- Sd/- (SANJAY GARG) (GIRISH AGRAWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata, Dated 05/04/2023 *SC SrPs M.A. No. 51/Kol/2022 A/o I.T.A. No. 607/Kol/2021 Assessment Year: 2018-19 & I.T.A. No. 607/Kol/2021 Assessment Year: 2018-19 M/s. Secure Offset Pvt. Ltd. 3 आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent 3. संबंिधत आयकर आयुᲦ / Concerned Pr. CIT 4. आयकर आयुᲦ)अपील (/ The CIT(A)- 5. िवभागीय ᮧितिनिध ,आयकर अपीलीय अिधकरण, कोलकाता/DR,ITAT, Kolkata, 6. गाडᭅ फाईल /Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Kolkata