MAKSAT TECHNOLOGIES PVT. LTD. ,DELHI V. DCIT,CIRCLE 16(1), DELHI

ITA 143/DEL/2022

AI Insights

The case involves M/s. Maksat Technologies Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, concerning an ESI/PF disallowance of Rs.10,55,968 under section 143(1) of the Income-tax Act, 1961. The primary legal issue was whether the employee's contributions to ESI/PF were credited within the statutory deadlines. The Tribunal referenced the Supreme Court's decision in Checkmate Services Pvt Ltd Vs. CIT, which clarified that such contributions must be credited by the statutory due dates, not merely by the date of filing the return under section 139(1). The Tribunal also noted a Bombay High Court decision supporting the disallowance under section 143(1)(a). However, the Tribunal found that the lower authorities had not adjudicated on the actual date of salary disbursement, which is crucial for determining compliance with the statutory provision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473559 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2019-2020
• Other Referred Cases: Checkmate Services Pvt Ltd Vs. CIT [2022] 143 taxmann.com 278 (SC), Rohan Korgaonkar Vs DCIT [2024] 159 taxmann.com 321 (Bom)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR JAIN
• Section: 143(1); 139(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No.143/Del/2022 Assessment Year: 2019-20 M/s. Maksat Technologies Pvt. Ltd., E-13, Ground Floor and Basement, Block No. B-1, Mohan Co-operative Industrial Estate, South Delhi, Delhi Vs. DCIT, Circle-16(1), Delhi PAN :AACCM7831L (Appellant) (Respondent) ORDER PER SATBEER SINGH GODARA, JM This assessee’s appeal for assessment year 2019-20, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2021-22/1037275863(1), dated 26.11.2021 involving proceedings under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Assessee by None Department by Sh. Dheeraj Kumar Jain, Sr. DR Date of hearing 20.01.2025 Date of pronouncement 20.01.2025 ITA No.143/Del/2022 2 | P a g e 2. Case called twice. None appears at the assessee’s behest. We thus proceed ex-parte against the appellate/assessee. 3. It emerges during the course of hearing with the able assistance coming from the Revenue side that both the learned lower authorities herein have invoked section 36(1)(va) ESI/PF disallowance amounting to Rs.10,55,968/- in the CPC’s section 143(1) processing as upheld in the lower appellate discussion. 4. Suffice to say, the instant issue hardly requires our detailed adjudication in light of the fact that hon’ble apex court’s in recent landmark decision in Checkmate Services Pvt Ltd Vs. CIT [2022] 143 taxmann.com 278 (SC) has already settled the issue against the assessee and in department’s favour that such an employee’s contribution to ESI/PF ought to be credited on or before the due date given in the corresponding statute than that of filing of return u/s 139(1) of the Act. This is indeed coupled with the fact that the case-law Rohan Korgaonkar Vs DCIT [2024] 159 taxmann.com 321] (Bom) has further concluded that such a disallowance could indeed be made in a processing under section 143(1)(a) of the Act as well. We thus see no merit in the assessee’s sole substantive grievance in principle. ITA No.143/Del/2022 3 | P a g e 5. Next comes equally important aspect of assessee’s compliance to the foregoing statutory provision going by the actual date of salary disbursement which has not been adjudicated by both the learned authorities. We thus deem it appropriate in the larger interest of justice to restore the assessee’s instant grievance to this limited extent to the learned Assessing Officer for its afresh appropriate factual verification subject to a rider that the assessee shall itself plead and prove at his own risk and responsibility that it had complied with the foregoing provision going by the actual date of monthly salary disbursement in consequential proceedings. Ordered accordingly. 6. This assessee’s appeal is partly allowed for statistical purposes. Order pronounced in the open court on 20th January, 2025 Sd/- Sd/- (S. RIFAUR RAHMAN) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 20th January, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "