TaxTMI 
TaxTMI 
TaxTMI 
2022 (5) TMI 444
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....n individual and proprietor of M/s. Lopa Enterprise, which is engaged in providing manpower supply services to industrial customers. For the Assessment Year 2018-19, the assessee filed his return of income on 04.10.2018 declaring the income of Rs. 37,22,340/-. The Centralized Processing Centre, Bangalore (hereinafter referred to as the "CPC") passed the intimation under Section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as the "Act") vide intimation dated 17.05.2019 by making disallowance on account of the delayed payment in relation to sum received from employees of Rs. 23,97,818/as contribution to Provided Fund and other statutory fund under Section 36(1)(va) of the Act and demanded a tax of Rs. 7,96,320/-. This intimatio....
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....ical issue. E. Ld. CIT Appeals has erred in taking altogether new stand by placing reliance on explanation 2 inserted to 36(1)(va) with effect from 1/4/2021 and by treating the amendment as a retrospective by applying the same for the current year. F. Ld. CIT Appeals failed to appreciate that employee's contribution post remittance to the PF authorities ceases to be an income in the hands of the assessee. G. Appellant therefore pleads that (1) Excess disallowance of Rs. 14,16,000/- be deleted as it is attributed due to arithmetic error. (2) Disallowance of Rs. 5,57,483/- made within the grace period be deleted as it is outside the scope of section 36(1)(va) (3) Disallowance of Rs. 4,24,335/- be deleted on the contentions rai....
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....ot made any attempt to file rectification petition against the intimation issued by the CPC u/s. 143(1) of the Act. The assessee for the first time before this Tribunal has filed a combined challan of account for employees' PF as well as the revised Tax Audit Report under Section 44AB of the Act. The revised Tax Audit Report was uploaded on 28.03.2019 which is much earlier than the intimation issued by the CPC dated 17.05.2019 under Section 143(1) of the Act. The learned DR appearing for the Department stated that this issue has not been properly projected before the NFAC and hence the same may be remitted back to the file of Assessing Officer for verification and correction. We are in agreement with the statement of the learned Departm....
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....) Spectrum Consultants India (P.) Ltd. v. CIT [2013] 215 taxman 597(Kar) viii) CIT vs. AIMIL Ltd. [2010] 188 Taxman 265/321 ITR 508 (Del) ix) PCIT vs. Rajasthan State Beverages Corpn Ltd. [2017] 250 taxman 32(Raj) x) Rakesh Janghu vs. CPC, [2022] 136 taxmann.com 154 (Delhi Trib) xi) B.R.S. Precision Manufacturing (P) Ltd. Vs. DCIT, [2022] 135 taxmann.com 248 (Bangalore Trib.) 8. The assessee also tried to distinguish the jurisdictional High Court judgment in the case of CIT Vs. Gujarat State Road Transport Corporation [2014] 41 taxmann.com 100 (Guj) and requested to delete the disallowance made by the CPC. 9. Per contra, the learned DR appearing for the Department submitted that the jurisdictional High Court in the case of Gujarat....
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....ovident Fund Act and/or in the ESI Fund under the ESI Act." 10. Further, the learned DR has also placed on record a Circular No. WSU/9(1)2013/Settlement dated 09.01.2016 of Employees' Provident Fund Organization informing the withdrawal of concession of grace period of 5 days to remit the employers contribution to PF account with effect from February 2016. The relevant paragraphs of the said circular are reproduced herein below for the reference:- "2. The grace period of five days have been allowed for the employers to remit the contributions as the system of calculation of wages of the employees and their corresponding dues under the twee schemes (Employees' Provident Fund Scheme 1952, Employees' Pension Scheme 1995 & Employ....