ITO, Ward-2(4), Durgapur V. Shri Vishnu Khaitan, Durgapur

MA 53/KOL/2022

AI Insights

The case involves an appeal by the revenue against the Tribunal's earlier decision which had dismissed the revenue's appeal concerning the deduction claims on employees' contributions to PF & ESI under Section 36(1)(va) read with Section 2(24)(x) of the Income Tax Act. The Tribunal had initially followed a precedent set in Lumino Industries Ltd. vs. ACIT, which was later overturned by the Supreme Court in Checkmate Services (P.) Ltd. v. Commissioner of Income-tax-1. The Supreme Court's decision clarified the legal position that strict compliance with the specified sections is mandatory and that the provisions of Section 43B do not apply to employees' contributions to PF & ESI. Consequently, the Tribunal recalled its earlier order and scheduled a new hearing for the case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132665 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-02-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 02-02-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 04-12-2022
• 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: Section 36(1)(va), Section 2(24)(x), Section 43B
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Section: 43B

Judgement Text

| आयकर अपीलीय अिधकरण ᭠यायपीठ, कोलकाता | IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE DR. MANISH BORAD, HON’BLE ACCOUNTANT MEMBER & SHRI SONJOY SARMA, HON’BLE JUDICIAL MEMBER M.A. No. 53/Kol/2022 I.T.A. No. 160/Kol/2022 Assessment Year: 2019-20 Shri Vishnu Khaitan M/s. Sagarbhanga Foundary and Engineering Naseer Avenue Durgapur - 713212 [PAN : ALSPK3740Q] Vs Income Tax Officer, Ward-2(4), Durgapur अपीलाथᱮ/ (Appellant) ᮧ᭜ यथᱮ/ (Respondent) Assessee by : None Revenue by : Smt. Ranu Biswas, Addl. CIT D/R सुनवाई कᳱ तारीख/Date of Hearing : 03/02/2023 घोषणा कᳱ तारीख /Date of Pronouncement: 21/02/2023 आदेश/O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This miscellaneous application filed by the revenue seeks to recall the order of the Tribunal in ITA No. 160/Kol/2022; 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 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. M.A. No. 53/Kol/2022 I.T.A. No. 160/Kol/2022 Assessment Year: 2019-20 Shri Vishnu Khaitan 2 3. In view of the above, we deem it fit to recall the order of this Tribunal dt. 7 th June, 2022 and direct the Registry to fix the appeal in ITA No. 160/Kol/2022, in the month of April, 2023 after serving notice to both the parties. 4. In the result, miscellaneous application of the revenue is allowed. Order pronounced in the Court on 21 st February, 2023 at Kolkata. Sd/- Sd/- (SONJOY SARMA) (DR. MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata, Dated 21/02/2023 *SC SrPs 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