SALKARA RESTAURANT,CALICUT V. THE ITO, KOZHIKKODE

ITA 79/COCH/2022

AI Insights

Salkara Restaurant, a partnership firm running a restaurant, filed an appeal against the order of the National Faceless Appeal Centre which confirmed the adjustments made by the Assessing Officer regarding belated remittance of contributions to employees' PF & ESI for the Assessment Year 2019-20. The Tribunal noted that the appeal was initially time-barred by 532 days, but accepted the condonation of delay due to the absence of accounting staff during the COVID-19 pandemic. The main legal issue was whether the adjustments made for the belated remittance were lawful. The Tribunal referenced decisions from the Supreme Court and the Kerala High Court, which supported the adjustments, leading to the dismissal of the appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23492 (ITAT-COCHIN)
• Duration Of Justice: 2 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 14-02-2022
• Other Referred Cases: Checkmate Services Pvt. Ltd. v. Pr. CIT, Inditrade Capital Ltd. v. CIT, CIT v. Mechem Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Keywords: Condonation of delay
• Section: 143(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member ITA No. 79/Coch/2022 (Assessment Year: 2019-20) Salkara Restaurant West Nadakkavu Vandipetta Kozhikode 673001 [PAN: ABYFS8116J] vs. The Income Tax Officer-1(3) Aayakar Bhavan Mananchira Kozhikode 673001 (Appellant) (Respondent) Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 28.10.2024 Date of Pronouncement: 30.10.2024 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 28.08.2021 for Assessment Year (AY) 2019-20. 2. At the outset, I find the appeal is time barred by limitation by 532 days before the Tribunal. The counsel representing the assessee filed a petition praying for condonation of delay on the ground that they could not submit hard copies of From 36 due to the absence of accounting staff due to Covid Pandemic. The assessee prayed to condone the delay of 532 days. 2 ITA No. 79/Coch/2022 Salkara Restaurant 3. Having gone through the averments made in the condonation petition filed by the assessee and in the absence of any contrary material to disbelieve the contention put forth by the assessee, I am of the considered opinion that it is a fit case to condone the delay of 532 days in filing the appeal and proceed for adjudication of the appeal on merits. 4. Brief facts of the case are that the assessee is a partnership firm engaged in the business of running a restaurant. The assessee had filed return of income for AY 2019-20 on 20.03.2020 declaring income of Rs. 4,93,602/-. The said return was processed u/s. 143(1) of the Income Tax Act, 1961 (the Act) vide intimation dated 02.07.2020 after making adjustments for belated remittance of contribution to employees’ PF & ESI of Rs. 1,40,496/-. 5. Being aggrieved an appeal was filed before the CIT(A) who vide the impugned order confirmed the action of the AO. 6. Being aggrieved the assessee is in appeal before the Tribunal in the present appeal. When the appeal was called nobody attended despite due service of notice of hearing. Therefore after hearing the learned Sr. DR I proceeded to dispose off the appeal as under. 7. The issue in the appeal stands covered by the decision of the Hon'ble Supreme Court in the case of Checkmate Services Pvt. Ltd. v. Pr. CIT(in Civil Appeal No.2833 of 2016) as well as the judgements of Hon'ble Jurisdictional High Court in the case Inditrade Capital Ltd. v. CIT [2024] 167 taxmann.com 82 (Ker) and CIT v. Mechem Ltd. [2015] 378 ITR 443 (Ker). Therefore we do not find any illegality in making adjustment of belated remittance of contribution to employees’ towards PF & ESI. 3 ITA No. 79/Coch/2022 Salkara Restaurant 8. This assessee’s appeal is dismissed. Order pronounced in the open court on 30th October, 2024 Sd/- (Inturi Rama Rao) Accountant Member Cochin, Dated: 30th October, 2024 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "