2023 (3) TMI 92

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....ion of Rs.10,15,000/- under Section 37/28 of the act. 2. The learned CIT(A) has erred both in law and on the facts of the case in confirming the action of the AO of disallowing employee's contribution towards PF amounting to Rs.45,470/- u/s.36(1)(va) r.w.s. 2(24)(x) of the Act. 3. Both the lower authorities have passed the orders without properly appreciating the facts and they further erred in grossly ignoring various submissions, explanations and information submitted by the appellant from time to time which ought to have been considered before passing the impugned order. This action of the lower authorities is in clear breach of law and principles of natural justice and therefore deserves to be quashed. 4. The ....

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....- on account of late payment of Employees' Contribution to Provident Fund. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. In respect of ground no.2, the Ld. AR submitted that the same is covered against the assessee vide decision of Hon'ble Apex Court in the case of Chekmate Services Pvt. Ltd. vs. CIT (2022) 448 ITR 518. Hence, ground no.2 is dismissed. 6. As regards to Ground nos.3 to 5, the same are general in nature and hence no adjudication is required at this juncture. 7. As regards to ground no.1, confirming addition of Rs.10,15,000/- relating to compensation for cancellation of booking of residential complex, the Ld. AR subm....

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....curred wholly and exclusively for the business of the assessee. The assessee is engaged in the construction of residential complex and many occasions the customers find it difficult to find buyer for such flat themselves. Hence, they contact the builder for finding a new buyer for their property. In such a scenario, the builder usually buys back the property from such customers at the prevailing market rate, returns the booking amount alongwith additional sum which takes care of appreciation in the value of property. In turn, sells such property to new customers and earns profit on such sale. In the above process, additional sum paid by builder to erstwhile buyers upon cancellation of booking/buyback of property would be a business expendit....

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....tion does not arise. The Ld. DR relied upon the Assessment Order and the order of the CIT(A). 9. Heard both the parties and paused all the relevant material available on record. It is pertinent to note that there is a delay of 47 days in filing the present appeal which has been explained by the assessee through affidavit and the delay appears to be genuine and hence the delay is condoned. From the perusal of the records, it can be seen that the customers approached the assessee for cancellation of booking and from Annexure-A, B & C it can be seen that the assessee by paying the limited compensation has made profit after entering into new transactions. Thus, the assessee made profit after paying minimum compensation to these three parties....