TaxTMI 
TaxTMI 
2023 (7) TMI 1538
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.... the case, the Ld. CIT (A) is correct on facts and in law in deleting the addition of Rs. 2,63,96,393/- on account of employees' contribution to PF & ESI even when the same was deposited by the employer after the due date as specified in respective Statutes. 2. Whether the facts and circumstances of the case, the Ld. CIT (A) is correct in deleting the addition of Rs. 2,63,96,393/- on account of late deposit of employees' contribution to PF & ESI ignoring the provisions of section 2(24)(x) r.w. 36(1)(ra) of IT Act, 1961. 3. Whether on the facts and circumstances of the case, the Ld. CIT (A) is correct in deleting the addition on the issue of late deposit of employees' contribution of PF & ESI in view of the judgem....
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....t the additions/disallowance made by the Assessing Officer by passing the order under Section 143(1) are illegal, bad in law & without jurisdiction as the AO-CPC erred in law as well as on merits in making addition / adjustment of Rs. 2,63,96,393/-for the PF and ESIC contribution of the employees deposited beyond the due date as per PF and ESIC Act but within the time allowed to file the IT Us. 139 (1) and deposited before filing I.T. return. He further contended that under the facts and circumstances, the addition of Rs. 2,63,96,393/- for PF and ESIC contribution of employees deposited beyond the due date as per PF and ESIC Act but within the time allowed to file the IT is outside the scope of addition / adjustment while processi....
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....rt of its claim. 7. From the cross objections and submissions of ld. AR we note that the ld. AR for the assessee submits at the outset that such adjustments/ disallowances for alleged delay in deposit of employees contribution to PF/ESIC is not permissible while drawing intimation under S. 143(1) of the Act having regard to several tribunal decisions. The ld. AR also submitted that alternatively the claim of assessee is allowable u/s. 37(1) of the Act and he has relied on certain orders of coordinate benches of Tribunal to support this plea. 8 The ld. AR further submits that the assessee, in the instant case, has shown business income from the business of building construction and allied services and interest income under the head income ....
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....ued enhancing the assessed income in the captioned assessment years. The CIT (A) in the first appeal has sustained the adjustments towards belated deposits of employees' contribution to PF/ESIC in the light of the judgment rendered by the Hon'ble Supreme Court in Checkmate Pvt. Ltd. vs. CIT, (2022) 143 taxmann.com 178 (SC). The contention of the Assessee that such additions cannot be made under the umbrella of S. 143(1) is covered against the assessee the decision of the co-ordinate bench in the case of Weather Comfort Engineers Private Limited vs. ACIT-CPC ITA No. 959/Del/2021 order dated 15/02/2023. The action of CPC and CIT (A) thus cannot be faulted where some opportunity was admittedly given for response. 11. First of all, we pro....
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....under the respective statute. The accrual of liability towards payment of salary without actual disbursement would not fasten obligation for deposits of employees contribution in the labour Acts per se. as observed by the co-ordinate bench in Kanoi Paper and Industries Ltd. vs. ACIT (2002) 75 TTJ 448 (Cal). This aspect has not been found to be examined by the Assessing Officer or CIT(A). Hence without expressing any opinion on merits on this aspect, we deem it expedient to restore the matter to the file of designated AO. It shall be open to the assessee to place factual matrix before the AO and take such plea for evaluation of the AO. The AO shall examine this aspect and fresh order in accordance with law after giving proper opportunity. Co....