MOHD RIZWAN ANSARI,ALIGARH V. ITO WARD 4(1)(3), ALIGARH

ITA 53/AGR/2025

AI Insights

The case involves Mohd Rizwan Ansari, a government contractor running a proprietorship business, who appealed against the order of the Learned Addl./JCIT(Appeals)-6, Chennai. The appeal was related to the disallowance of a deduction for delayed payment of employees' contributions to PF/ESI amounting to Rs.55,62,245, which was included in the audit report under column 20(b). The assessee argued that the contributions were made before the filing of the return and included both employees' and employer's contributions. However, the Tribunal found no evidence to support the claim that the amount included employer contributions and upheld the disallowance based on the Supreme Court's precedent.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669093 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Other Referred Cases: Checkmate Services Pvt. Ltd. vs. CIT-1
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SRIVASTAVA.

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH ‘SMC’: AGRA BEFORE SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.53/AGR/2025 (ASSESSMENT YEAR: 2018-19) Mohd Rizwan Ansari, House No.49, AL-HAMD Colony, Post Officer-CDF, Anoopshahr Road, Aligarh-202001 (U.P.) PAN-AAWPA0210E Vs. Income Tax Officer, Ward-4(1)(3), Aligarh. (Appellant) (Respondent) Assessee by None Department by Shri Shailendra Srivastava. Sr. DR Date of Hearing 19/05/2025 Date of Pronouncement 24/06/2025 O R D E R [ PER MANISH AGARWAL, AM: This is an appeal filed by the assessee against the order of the Learned Addl./JCIT(Appeals)-6, Chennai in Appeal No. 10006/2017- 18 for Assessment Year 2018-19 dated 31/12/2024 passed u/s 250 of the Income Act, 1961 (‘the Act’ for short) arising out of the order passed u/s 143(1) dated 08.01.2020. 2 ITA No.53 /Agr/2025 Mohd Rizwan Ansaril vs. ITO 2. Brief facts of the case are that assessee is a Govt. contractor runs business under proprietorship M/s R. R. Engg. Com. The return of income was filed on 15.10.2018 declaring total income of Rs.13,00,020/- which was processed vide order u/s 143(1) dated 08.01.2020 wherein CPC has disallowed delayed payment on account of employees contribution towards PF/ESI of Rs.55,62,245/- 3. Against such intimation order the assessee has preferred an appeal before ld. CIT(A) who vide impugned order has dismissed the appeal. Thus, the present appeal is filed before the Tribunal. Assessee in the grounds of appeal has claimed that the amount of employees contribution towards PF/ESI was made much before the filing of return and, therefore, no disallowance should be made u/s 36(1)(va) of the Act. He further submitted that this amount also includes the employer contribution towards PF/ESI and the figure mentioned in the audit report in column 20(b) has wrongly been stated at Rs.55,62,245/- which actually included amount of employees contribution and employer contribution both, thus, deduction to the extent of employer’s contribution to such funds deserves to be allowed. 4. On the other hand, the Ld. Sr. DR supports the orders of the lower authorities and submits that the ld. CIT(A) has relied upon the judgment of Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. vs. CIT-1 in Civil Appeal No.2833 of 2016 wherein the Hon’ble Apex Court had held that the payment of employees 3 ITA No.53 /Agr/2025 Mohd Rizwan Ansaril vs. ITO contributions to PF/ESI is disallowable u/s 36(1)(va) of the Act, if the same is paid delayed as per respective Acts. 5. Heard both the parties. From the perusal of the records, it is seen that the instant case, CPC has disallowed sum of Rs.55,62,245/- being the amount reported in column 20(b) of the Tax Audit Report as “employees contribution to any fund and not paid before the due date prescribed under the relevant act being disallowable u/s 36(1)(va) of the Act. Before the AO, the assessee has failed to file any evidence with regard to the claim that this amount includes employer contribution also. Under these circumstances, we find no infirmity in the order of Ld. Addl./JCIT (Appeals) and dismissed the appeal of the assessee by placing reliance on the judgment of the Hon’ble Supreme Curt in the case of Checkmate Services (supra) which has put the end to the dispute with respect to the delayed payment on employees contribution towards PF/ESI. With these findings, all the grounds taken by assessee are dismissed. 6. In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 24.06.2025. Sd/- Sd/- (SUNIL KUMAR SINGH) (MANISH AGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 24.06.2025 PK/Sr. Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4 ITA No.53 /Agr/2025 Mohd Rizwan Ansaril vs. ITO 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR "