2023 (2) TMI 1329 - AT - Income Tax

ITAT Dismisses Appeal for Non-Appearance, Upholds Revenue's Additions on Late Provident Fund/ESIC Contributions.

BT Data and Surveying Services India Pvt. Ltd. Versus ITO, Circle Int. Tax-4 (2), Delhi

The ITAT dismissed the assessee's appeal ex-parte due to non-appearance, upholding the Revenue's additions for late deposits of employees' contributions ... Delayed deposit of employees contribution indicated in the Audit Report - adjustment u/s 143(1) - HELD THAT:- The issue towards taxability of belated employees contribution to Provident Fund/ESIC is no longer res integra in the light of the judgement of the Hon’ble Supreme Court in the case of Checkmate Services (P.) Ltd. vs CIT [2022 (10) TMI 617 - SUPREME COURT] The co-ordinate Bench of the Tribunal in Cemetile Industries vs ITO [2022 (12) TMI 354 - ITAT PUNE] had expressed a view that such adjustment/disallowance is also permissible in the proceedings carried out u/s 143(1) of the Act. Very recently, in Savleen Kaur & Others [2023 (2) TMI 51 - ITAT DELHI] for Assessment Year 2018-19 & Others has also taken a similar view and upheld the action of the Revenue. In parity with the view taken by Co-ordinate Benches, we do not see any merit in the appeal of the assessee The appeal was filed against the order of Ld. CIT(A), National Faceless Appeal Centre, Delhi concerning assessment year 2018-19. The assessee challenged the disallowance of employees' contribution to Provident Fund/ESIC. The assessee did not appear for the hearing, leading to an ex-parte proceeding. The Revenue made additions to the income of the assessee for late deposits, citing relevant case law. The Tribunal upheld the Revenue's action based on previous judgments, including one by the Supreme Court. The appeal of the assessee was dismissed ex-parte on 07th February, 2023.