SMARTENVIRO SYSTEMS PRIVATE LIMITED,PUNE V. I.T.O, PUNE

ITA 1144/PUN/2025

AI Insights

The case involves Smartenviro Systems Private Limited appealing against the order of the Addl/JCIT (A)-4 Kolkata, which confirmed the disallowance of Rs. 15,09,924/- towards the employer's contribution to Provident Fund dues, treating it as an employee's contribution and applying the judgment of the Hon'ble Apex Court in Checkmate Services (P.) Ltd. Vs. CIT. The Tribunal found that the employer's contribution was wrongly treated as an employee's contribution and confirmed the disallowance only for the employee's contribution which was deposited late.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775876 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Appeal Filed On: 01-05-2025
• Other Referred Cases: Checkmate Services (P.) Ltd. Vs. CIT
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHASHANK OJHA
• Assessee Lawyers: PRAMOD S SHINGTE
• Keywords: Principle of natural justice; Rectification of order

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1144/PUN/2025 Assessment Year : 2021-22 Smartenviro Systems Private Limited, Sr. No.17/B, Plot No.5, Gala No.26, Pragati Industrial Complex, Kothrud, Pune-411038 Maharashtra PAN: ABACS1923J Vs. Income Tax Officer, Circle 5, Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2020-21 is directed against the order dated 04.04.2025 of Addl/JCIT (A)-4 Kolkata passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Rectification Order dated 30.09.2021 passed u/s.154 of the Act. 2. Assessee has raised following grounds of appeal : “1. On the facts and in the circumstances of the case and in law, lower authorities have erred in making an addition of Rs. 15,09,924/- towards late payment of Employers contribution to Provident Fund dues as the same is allowable as the payment is made before the due date of filing of Income Tax return for the A.Y 2020-21. Appellant by : Shri Pramod S Shingte Respondent by : Shri Shashank Ojha Date of hearing : 20.08.2025 Date of pronouncement : 12.09.2025 Printed from counselvise.com ITA No.1144/PUN/2025 Smartenviro Systems Private Limited 2 Your appellant prays for deletion of entire addition. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal before or during the course of hearing in the interest of natural justice.” 3. At the outset, Ld. Counsel for the assessee submitted that ld.CIT(A) erred in confirming the disallowance of Employers contribution at Rs.15,09,924/- which was deposited prior to the date of furnishing the return of income u/s.139(1) of the Act by treating it as Employee’s contribution towards PF and ESI and applying the judgment of Hon’ble Apex Court in the case of Checkmate Services (P.) Ltd. Vs. CIT (2022) 143 taxmann.com 178 (SC). 4. On the other hand, ld. DR supported the order of ld.CIT(A) but failed to controvert the submissions made by ld. Counsel for the assessee. 5. We have heard the rival contentions and perused the record placed before us. We notice that the assessee is Proprietary Limited Company and there was disallowance of Rs.16,336/- for late payment of employees contribution to PF and disallowance u/s.36(1)(va) at Rs.15,09,924/- for late payment of Employers contribution to PF. We however going through the impugned order of ld.CIT(A) and the details mentioned therein observe that the Employers contribution to PF at Rs.15,09,924/- deserves to be allowed because the payments of the same were made before the due date of filing of the return u/s.139(1) for A.Y. 2020-21. This fact is duly supported by the Audit Report and the observation of Auditor in the respective column annexed to Tax Audit Report. We further note that ld.CIT(A) has actually confirmed the disallowance at Rs.18,16,726/- u/s.36(1)(va). For arriving at this figure, Printed from counselvise.com ITA No.1144/PUN/2025 Smartenviro Systems Private Limited 3 ld.CIT(A) has enhanced the disallowance made towards employees contribution from Rs.16,336/- to Rs.3,06,802/-. 6. So far as employees contribution to PF and ESI which has been deposited after the due date amounting to Rs.3,06,802/- is concerned, the same deserves to be disallowed in view of the ratio laid down in the case of Checkmate Services (P.) Ltd. Vs. CIT (supra) . However, ld.CIT(A) has inadvertently disallowed the employers contribution of Rs.15,09,9024/- which is not covered by the judgment in the case of Checkmate Services (P.) Ltd. Vs. CIT (supra). 7. Before us, Ld. Counsel for the assessee fairly admitted that disallowance of Rs.3,06,802/- deserves to be confirmed. We therefore under the given facts and circumstances are of the considered view that out of the total disallowance of Rs.18,16,726/-, the disallowance made towards employers contribution at Rs.15,09,924/- is hereby deleted as the necessary condition prescribed u/s.43B of the Act has been fulfilled. So far as the remaining amount of disallowance at Rs.3,06,802/- towards delayed deposit of employees contribution to PF and ESI, the same is hereby confirmed. 8. In the result, the appeal filed by the assessee is partly allowed. Order pronounced on this 12th day of September, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 12th September, 2025. Satish Printed from counselvise.com ITA No.1144/PUN/2025 Smartenviro Systems Private Limited 4 आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0011च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "