Tribunal Orders Reassessment of Provident Fund Payment Dates Due to Audit Discrepancies.

The Tribunal remitted the matter back to the Assessing Officer (AO) for verification of the actual payment dates of the employees' Provident Fund contributions, as discrepancies were reported in the Tax Audit Report. The Tribunal directed the AO to reassess the disallowance in accordance with the law and the Supreme Court's decision in Chekmate Services Pvt. Ltd. Consequently, the Tribunal allowed the appellant's appeal for statistical purposes, indicating a favorable outcome for the appellant. The order was pronounced in open court on 9th June 2023.

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Issues:
Appeal against disallowance of delayed deposit of employees' contribution to P.F. u/s. 36(1)(va) of the Income Tax Act, 1961.

Analysis:
The appellant, engaged in tea cultivation, filed its return of income for AY 2019-20, reporting business income. The Centralised Processing Centre (CPC) disallowed an amount relating to delayed payment of employees' Provident Fund contribution. The appellant appealed to the Ld. CIT(A), who upheld the disallowance. The appellant then approached the Tribunal challenging the order.

The appellant's counsel argued that discrepancies in dates reported in the Tax Audit Report led to the disallowance. He requested a remand to the Ld. AO to verify the challans for the deposit of the contribution. The counsel cited the recent decision of the Hon'ble Supreme Court in Chekmate Services Pvt. Ltd. vs. CIT [2022] 143 taxmann.com 178 (SC) to support the appeal. The Senior DR did not object to this submission.

The disallowance was based on the Tax Audit Report filed by the appellant, indicating the due dates and actual payment dates of the Provident Fund contributions. The appellant claimed errors in the reporting of actual payment dates by the Tax Auditor, necessitating verification. The Tribunal accepted this claim and remitted the matter back to the Ld. AO for verification of the actual payment dates with the challans. The Ld. AO was directed to consider the allowance in accordance with the law and the Supreme Court's decision in Chekmate Services Pvt. Ltd.

Consequently, the Tribunal allowed the appellant's appeal for statistical purposes, indicating a favorable outcome for the appellant in challenging the disallowance. The order was pronounced in open court on 9th June 2023.

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