2022 (2) TMI 221 - AT - Income Tax

Appeal dismissed due to delay, disallowance of employee contributions upheld, interest and penalty confirmed.

Veeda Clinical Research Pvt. Ltd. Versus Deputy Commissioner of Income Tax, Circle-4 (1) (2) Ahmedabad

The appeal was dismissed as the delay in filing was condoned due to the Chartered Accountant's fault. The disallowance of employee's contributions towards ... Employee's contribution to ESIC and PF deposited delayed - HELD THAT:- Since admittedly the issues stand covered against the assessee by the decision of the Jurisdictional High Court in the case of GSRTC [2014 (1) TMI 502 - GUJARAT HIGH COURT] which has also been followed by the ld. CIT(A) while dismissing the assessee's appeal, we have noted, We see no reason to interfere in the order of the Ld. CIT(A) upholding the addition made to employee's contribution to ESIC and PF deposited delayed - The appeal of the assessee is therefore dismissed. Issues:1. Delay in filing the appeal and condonation of the delay.2. Disallowance of employee's contribution towards PF and ESIC.3. Levy of interest under sections 234A/B/234C of the Income Tax Act.4. Initiation of penalty under section 271(1)(c) of the Income Tax Act.Delay in filing the appeal and condonation of the delay:The appeal was delayed by 54 days, and the Chartered Accountant admitted fault for not filing it on time. The Chartered Accountant, in an affidavit, acknowledged forgetting to pass on the order for filing the appeal to the concerned advocate. The delay was attributed solely to the Chartered Accountant, and the assessee actively pursued the remedy. The delay was condoned as it was not the assessee's fault, and the appeal proceeded.Disallowance of employee's contribution towards PF and ESIC:The assessee raised grounds challenging the disallowance under section 36(1)(va) r.w.s. 2(24)(x) of the Act. However, during the hearing, the counsel admitted that the issue was covered against the assessee by a judgment of the Jurisdictional High Court. The Tribunal upheld the addition made to employee's contributions to ESIC and PF, amounting to Rs. 4,46,686, as the issue was covered by the High Court's decision.Levy of interest under sections 234A/B/234C of the Income Tax Act:The Tribunal confirmed the action of the Assessing Officer in levying interest under sections 234A/B/234C of the Act. The appeal on this ground was dismissed as no new arguments were presented by the counsel, and the issue was not interfered with.Initiation of penalty under section 271(1)(c) of the Income Tax Act:The Tribunal also upheld the initiation of penalty under section 271(1)(c) of the Act. The appeal challenging the penalty was dismissed as all grounds raised by the assessee were rejected. The overall appeal of the assessee was dismissed, and the order was pronounced on 31-01-2022.This judgment addressed the delay in filing the appeal, disallowance of employee's contributions towards PF and ESIC, levy of interest under sections 234A/B/234C, and initiation of penalty under section 271(1)(c) of the Income Tax Act. The delay in filing the appeal was condoned due to the Chartered Accountant's fault, while the issues raised by the assessee regarding disallowance and penalties were dismissed as they were covered by previous judgments and lacked new arguments during the hearing.