2022 (9) TMI 826

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....er so passed by the NFAC is bad in law, illegal and having been passed in violation of the principle of natural justice as well as against the set procedure in law. ii. On the facts & in the circumstances of the case as well as in law the NFAC had grossly erred in confirming the order of the AO in making the addition of Rs.4,18,965/- u/s 36(1)(va) read with section 2(24)(x) under the head employee's contribution to PF & ESI deposited with the concerned authorities within the due date prescribed for filing of return u/s 139(1) by not following the judgment of the Hon'ble Jurisdictional Calcutta High Court in the case of CIT vs Vijayshree Ltd. reported in 43 taxmann.com 396 and CIT-2, Kolkata vs Coal India Ltd. in ITA 12 of 2015 order date....

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.... 3. At the time of hearing, the ld. AR appeared and submitted that the core issue in this appeal is disallowance of sum of Rs. 4,18,965/- being contribution of employees' share towards ESI and PF set up for the welfare of the employee u/s 36(1)(va) read with section 2(24)(x) of the Income Tax Act, 1961 which were paid within the due dates of filing of return u/s 139 of the Income Tax Act, 1961. 4. While going through the material available on record it is found that there was a delay in depositing employee's as well as employer's contribution to the Employee's Provident Fund/ESI fund. However, the amount was deposited before the due date of the filing of the return under the respective Acts. The instant this issue is squarely covered by th....

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....as been deposited beyond the due date applicable under the provision of ESI Act, 1948 and EPF Act by invoking the provision of Section 36(1)(va) of the Act. Aggrieved by this disallowance, the assessee filed the appeal before the national Faceless Appeal Centre (NFAC), Delhi where the Ld. CIT(A) has taken note of the assessee's submission that no disallowance was warranted in respect of delayed deposit of employees contribution to EPF /ESI fund since the assessee has deposited the employees contribution in respect of both these Acts (EPF & ESI Act) before filing the return of income and relied on the various judicial decision including that of the jurisdictional Hon'ble High Court of Calcutta in the case of CIT vs. Vijayshree Ltd. in [2014]....

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....e deletion of the addition by the AO on account of Employees 'Contribution to ESI and PF by invoking the provision of Section 36(1)(va) read with Section 2(24)(x) of the Act was correct or not. It appears that the Tribunal below, in view of the decision of the Supreme Court in the case of Commissioner of Income Tax vs. Alom Extrusion Ltd., reported in 2009 Vol.390 ITR 306, held that the deletion was justified. Being dissatisfied, the Revenue has come up with the present appeal. After hearing Mr. Sinha, learned advocate, appearing on behalf of the appellant and after going through the decision of the Supreme Court in the case of Commissioner of Income Tax vs. Alom Extrusion Ltd., we find that the Supreme Court in the aforesaid case has he....