ACIT(OSD) CORPORATE RANGE-1, CHENNAI V. DAECHANG INDIA SEAT COMPANY P.LTD, SRIPERUMBUDUR

MA 57/CHNY/2023

AI Insights

The case involves the Revenue's Miscellaneous Petition seeking to recall the Tribunal's earlier order which upheld the CIT(A)'s decision regarding the deduction of Employee's Contribution to PF/ESI for the assessment year 2015-16. The Tribunal's original decision was influenced by precedents that the Supreme Court later clarified in M/s. Checkmate Services P. Ltd. and others, leading to the recognition of a mistake apparent in the Tribunal's earlier order. The Tribunal has now decided to recall the previous order and restore the appeal for re-evaluation based on the Supreme Court's latest judgment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135346 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 21-09-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 14-02-2023
• Other Referred Cases: M/s. Checkmate Services P. Ltd. and others in Civil Appeal No. 2833 of 2016, CIT v. Industrial Security & Intelligence India Pvt. Ltd. in TCA Nos. 585 and 586 of 2015, CIT v. Alom Extrusions Ltd. 319 ITR 306
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

आयकर अपीलीय अिधकरण, ’डी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी वी दुगाŊ राव Ɋाियक सद˟ एवं ŵी जी. मंजुनाथा, लेखा सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member & Shri Manjunatha, G., Accountant Member M.P. No. 57/Chny/2023 [In I.T.A. No.1460/Chny/2019] िनधाŊरण वषŊ/Assessment Year: 2015-16 The Joint Commissioner of Income Tax (OSD) Corporate Circle 1(1), Chennai 600 034. Vs. M/s. Daechang India Seat Company Private Limited, No. 491, Mannur Village, Sriperumbudur – 602 195. [PAN:AACCD3176F] (Petitioner) (ŮȑथŎ/Respondent) Petitioner by : Shri D. Hema Bhupal, JCIT ŮȑथŎ की ओर से/Respondent by : Shri I. Dinesh, Advocate सुनवाई की तारीख/ Date of hearing : 22.09.2023 घोषणा की तारीख /Date of Pronouncement : 22.09.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: By means of present Miscellaneous Petition, the Revenue seeks to recall the order passed by the Tribunal in I.T.A. No. 1460/Chny/2019 dated 29.07.2022 relevant to the assessment year 2015-16. 2. By referring to the miscellaneous petition, the ld. DR has submitted that the appeal filed by the Revenue has been dismissed by upholding the decision of the ld. CIT(A) with regard to the claim of M.P. No. 57/Chny/23 2 deduction of Employee’s Contribution to PF/ESI and the Tribunal order has been received by the Department on 17.08.2022. By relying upon the decision of the Hon’ble Supreme Court in the case of M/s. Checkmate Services P. Ltd. and others in Civil Appeal No. 2833 of 2016 dated 12.10.2022, the ld. DR has submitted that there is a mistake apparent in the order of the Tribunal with regard to deduction under section 36(1)(va) of the Act on delayed payments of PF and ESI and pleaded that the order of the Tribunal may be recalled and pass fresh order in light of the above Supreme Court’s decision. 3. On the other hand, the ld. Counsel for the assessee has relied on the order passed by the ITAT. 4. We have heard both the sides, perused the order passed by the Tribunal as well as detailed written submissions along with various case law filed by the ld. Counsel for the Respondent and also perused. In the appeal order dated 29.07.2022, by following the decision in the case of CIT v. Industrial Security & Intelligence India Pvt. Ltd. in TCA Nos. 585 and 586 of 2015 dated 24.07.2015 as well as decision of the Hon’ble Supreme Court in the case of CIT v. Alom Extrusions Ltd. 319 ITR 306 the Tribunal has directed the Assessing Officer to allow the M.P. No. 57/Chny/23 3 deduction and dismissed the appeal filed by the Revenue. On perusal of the judgement in the case of M/s. Checkmate Services P. Ltd. and others (supra), in para 51, the Hon’ble Supreme Court has held that in the case of CIT v. Alom Extrusions Ltd. (supra), which was followed by the Tribunal, the Hon’ble Supreme Court did not consider the fact of the introduction of Section 2(24)(x) or in fact the other provisions of the Act. In view of the facts and circumstances, we are of the opinion that in view of the decision of the Hon’ble Supreme Court in the case M/s. Checkmate Services P. Ltd. and others (supra), there is a mistake apparent in the order passed by the Tribunal dated 29.07.2022. Accordingly, we recall the order of the Tribunal in I.T.A. No. 1460/Chny/ 2019 dated 29.07.2022 for the assessment year 2015-16 and the appeal is restored for fresh adjudication with regard to deduction claimed under section 36(1)(va) of the Act on delayed payments of PF and ESI. 5. In the result, the MP filed by the Revenue is allowed. Order pronounced in the open Court on 22 nd September, 2023 at Chennai. Sd/- Sd/- (MANJUNATHA, G.) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 15.09.2023 M.P. No. 57/Chny/23 4 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.