MARKOLINES INFRA PVT LTD.,BELAPUR V. ACIT/DCIT CIRCLE-15(1)(1), MUMBAI

MA 241/MUM/2024

AI Insights

Markolines Infra Private Limited filed a Miscellaneous Application under section 254(2) of the Income Tax Act, 1961, seeking rectification of a previous order concerning the assessment year 2020-21. The application contested the Tribunal's earlier findings, claiming mistakes in acknowledging the service of notice under section 143(1)(a) and in the application of relevant legal provisions. The Tribunal, however, upheld its previous decision, noting that the issues raised by the assessee were contingent on the timing of the PF/ESIC contributions, which were subject to an extended deadline. The Tribunal's decision to keep these issues open meant that they could be revisited depending on the final determination of the contribution payments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 397052 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-05-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: USHA GAIKWAD
• Assessee Lawyers: PRADIPKAPASI
• Keywords: Set aside

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORESHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER MA No.241/MUM/2024 (Arising out of ITA No.1170/MUM/2023) (Assessment Year :2020-21) Markolines Infra Private Limited, 502, A – Wing Shri Nand Dham Sector No.11, CBD Belapur, Navi Mumbai – 400614 PAN: AAECM1763H ............... Appellant v/s ACIT–15(1)(1), Room No.451, 1st Floor, Aayakar Bhawan, M.K. Road, Mumbai - 400020 ……………… Respondent Assessee by : Shri Pradip Kapasi Revenue by : Smt. Usha Gaikwad, Sr.DR Date of Hearing – 07/03/2025 Date of Order - 30/05/2025 O R D E R PER SANDEEP SINGH KARHAIL, J.M. The assessee has filed the present Miscellaneous Application under section 254(2) of the Income Tax Act, 1961 (\"the Act\") seeking rectification of the order dated 08/05/2024 passed by the coordinate bench of the Tribunal in assessee’s appeal being ITA No. 1170/Mum./2023, for the assessment year 2020-21. 2. The primary contentions of the assessee for seeking rectification of the order dated 08/05/2024 passed by the coordinate bench of the Tribunal have MA No. 241/Mum/2024 (A.Y. 2020-21) 2 been summarised in para-6 of the present Miscellaneous Application, which reads as follows: – “a. A mistake is committed while passing the order wherein the honourable Tribunal ignored the affidavit dated 01.08.2023 by the Director of the company, Mr. SanjayB Patil, wherein it was clearly stated and affirmed that the notice under section143(1)(a) proposing to make adjustments was not issued and served at all. b. Another mistake is committed by the honourable ITAT in passing the order wherein it held that the notice under section 143(1)(a) was issued and served onthe company without there being any evidence whatsoever produced and broughton record by the AO or DR. c. A mistake was committed by honourable ITAT in passing the order whereunderthe honourable ITAT altogether ignored the provisions of Rule 127, Notification No. 2/2016 dt. 03.02.2016, Civil Procedure Code, 1908 and InformationTechnology Act,2000 which required that any notice should be lawfully served served on the address / addresses preferred and chosen and communicated to Income Tax Authorities. d. Yet another mistake was committed by honourable ITAT in para 15 on page 12 of the Order dt. 08.05.2024 by relying upon the alleged communication post hearingclaimed to have been furnished by DR after hearing without providing the copy thereof to the applicant and affording an opportunity to present its case on the alleged communication.” 3. Accordingly, the assessee has prayed for rectification of the order dated 08/05/2024 passed by the coordinate bench of the Tribunal under section 254(1) of the Act. 4. On the other hand, the learned Departmental Representative (“learned DR”) vehemently objected to the payer of the assessee seeking rectification of the order passed by the coordinate bench of the Tribunal. 5. Having considered the submissions of both sides and perused the material available on record, we, at the outset, find that the coordinate bench vide its order dated 08/05/2024 restored the issue of disallowance made under section 36(1)(va) of the Act on account of delayed payment of MA No. 241/Mum/2024 (A.Y. 2020-21) 3 Employees’ Contribution to PF/ESIC to the file of the jurisdictional Assessing Officer for de novo adjudication, after taking into consideration Notification No.C-I/Misc./2019-20/Vol-II/Part/9 dated 15/04/2020 issued by the Employees’ Provident Fund Organization, whereby, as per the assessee, the time period for payment/deposit of Employees’ Contribution towards PF/ESIC was extended. It is further evident from the perusal of the order dated 08/05/2024 passed by the coordinate bench that the other issues raised by the assessee in its appeal for the assessment year 2020-21 were kept open and no decision was renderedby the Tribunal on the same on the basis that if the payment made by the assessee on account of Employees’ Contribution towards PF/ESIC has been found to be within the extended time granted by the concerned authority under the relevant statutes, then, the various issues raised by the assessee shall be rendered academic. Accordingly, the coordinate bench set aside the impugned order passed by the learned CIT(A) and allowed the ground raised by the assessee for statistical purposes. 6. Thus, since the coordinate bench has rendered no opinion on various issues raised by the assessee in its appeal and they have been kept open, we do not find any merits in the grounds raised by the assessee in the present Miscellaneous Application seeking rectification of the order, as the assessee shall be at liberty to raise all these contentions, if, in case, some addition is still sustained on account of delayed payment of Employees’ Contribution to PF/ESIC even after considering the aforesaid Notification issued by the Employees’ Provident Fund Organization. Accordingly, in the facts and circumstances of the present case,as noted above, the prayer of the assessee MA No. 241/Mum/2024 (A.Y. 2020-21) 4 in seeking rectification of the order dated 08/05/2024 passed by the coordinate bench is rejected. 7. In the result, the present Miscellaneous Application filed by the assessee is dismissed. Order pronounced in the open Court on 30/05/2025 Sd/- /GIRISH AGRAWAL ACCOUNTANT MEMBER Sd/- SANDEEP SINGH KARHAIL JUDICIAL MEMBER MUMBAI, DATED: 30/05/2025 Prabhat Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order Assistant Registrar ITAT, Mumbai "