STAUNCH BUSINESS SOLUTIONS,MOHALI V. ITO WARD 6 (1), CHANDIGARH (ADIT, CPC, BENGALURU, , CHANDIGARH

ITA 721/CHANDI/2024

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The case involves M/s Staunch Business Solutions, which appealed against the order of the CIT(A) confirming the adjustment made by the CPC regarding the disallowance of belated payment of employee's contribution to PF/ESI for the Assessment Year 2021-22. The CPC had added the belated contributions to the income of the assessee based on the Tax Auditor's report. The CIT(A) upheld this adjustment, referencing the decision of the Hon'ble Apex Court in Checkmate Services P. Ltd Vs. CIT. The tribunal dismissed the appeal, agreeing with the CIT(A)'s reliance on the Supreme Court's precedent and rejecting the assessee's argument that the deduction could be claimed under section 37(1) of the Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47040 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2021-2022
• Other Referred Cases: Checkmate Services P. Ltd Vs. CIT, M/s Electrical India & ors., M/s Nirakar Security & Consultancy Services Pvt. Ltd.
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR LD.
• Assessee Lawyers: VINEET KRISHAN LD
• Section: 143(1); 43B

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHANDIGARH BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No.721/CHANDI/2024 (िनधाŊरणवषŊ / Assessment Year: 2021-22) M/s Staunch Business Solutions SCF-7, Second Floor, 125, Kharar SAS Nagar, Mohali. 140301. बनाम/ Vs. ITO, Ward No. 6(1), Chandigarh. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ADHFS-4693-M (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Vineet Krishan (Adv.) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 01-04-2025 घोषणाकीतारीख /Date of Pronouncement : 08-04-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2021-22 arises out of an order of learned Addl. / Joint Commissioner of Income Tax (Appeals), Vishakhapatnam [CIT(A)] dated 27-03-2024 in the matter of an intimation issued by CPC u/s 143(1) disallowing belated payment of employee’s contribution to PF / ESI u/s 36(1)(va) r.w.s. 43B of the Act. The registry has noted delay of 26 days in the appeal which stand condoned. 2. From the facts, it emerges that the assessee failed to deposit employees contribution to PF / ESI by due dates as specified under 2 those acts. The same was reported by Tax Auditor. Accordingly, CPC added the same to the income of the assessee. The Ld. CIT(A) confirmed the adjustment, inter-alia, by relying on the decision of Hon’ble Apex Court in Checkmate Services P. Ltd Vs. CIT (2022) 143 Taxmann.com 178 (SC). The Ld. CIT(A) also held that such an adjustment could be made u/s 143(1) as per the decision of Chennai Tribunal in the case of M/s Electrical India & ors. (ITA No.789/Chny/2022 & ors.). Aggrieved, the assessee is in further appeal before us. 3. We find that the impugned adjudication follows binding judicial precedent of Hon’ble Apex Court. Therefore, the adjudication could not be faulted with. The Ld. AR has referred to the decision of Cuttack Bench of tribunal in the case of M/s Nirakar Security & Consultancy Services Pvt. Ltd. (ITA No.98/Ctk/2022 dated 17-10-2022) to state that this deduction could be claimed u/s 37(1). However, in our opinion, specific provision would prevail over general provisions and therefore, no such deduction could be allowed to the assessee. The Ld. AR has also disputed the due dates as specified under relevant acts. However, we find that the default has been reported by Tax Auditor in the Tax Audit Report based on books of accounts as maintained by the assessee. Nothing has been shown to us that the due dates as indicated in the Tax Audit Report are not the correct due dates under relevant acts. Therefore, this plea does not have any substance. 3 4. The appeal stand dismissed. Order pronounced on 08-04-2025. Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT लेखा सद˟ /ACCOUNTANT MEMBER Dated: 08-04-2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH "