TaxTMI 
TaxTMI 
2025 (1) TMI 757
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.... time and the assessee responded to those notices at some occasions. In the course of scrutiny, the Assessing Officer noted that the assessee has made a payment of Rs. 83,78,449/- to one M/s. Meliora Services for carrying out services in respect of one of the clients of the assessee. Assessing Officer observed that TDS was also deducted on this amount, though the above concern was found not to have filed its return of income. The assessee furnished the ledger account of the above concern in its own books of accounts, copies of bills raised by M/s. Meliora Services and also confirmation regarding no dues from the party. Assessing Officer, however, noted that the total of bills/invoices as well as total receipt by M/s Meliora Services was to the tune of Rs. 83,78,449/-, but the ledger account of this concern in the books of the assessee revealed an expense of Rs. 1,06,59,188/. The assessee could not furnish any plausible explanation to this difference and accordingly, the difference of Rs. 22,80,737/- was disallowed and added to the total income of the assessee. Thus the income of the assessee was assessed at Rs. 1,40,45,600/-. 3. Against the aforesaid order of the AO, assessee pref....
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....etailed working and reconciliation is enclosed at Pages 41). In support of the assessee's contention for non-disallowance of Rs 1,368,501/- U/s 36(1) (va) re lance is placed: In view of the latest judicial pronouncements and judgments in the case of Sentinel Consultants Private Limited Vs ACIT ITA No 7 & 8/De1l2023 Dated 12/06/2023 it was observed y he Hon'ble Income Tax Appellate Tribunal (ITAT) in Para 9 of the Order as follows: Quote 9,3 "We also take note of yet another plea made out on behalf the assessee towards the methodology of calculation of default under the relevant PF I ESIC Act. The Ld. Counsel contends that the month during which the disbursement of salary is actually made would be relevant for the purpose of determination of due date of deposit under the respective statute. The accrual of liability towards payment of salary without actual disbursement would not fasten obligation for deposit 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 expr....
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....the due dates of payment of PF would be 15th April, 2018 and the actual date of payment is 16th, 20th and 215t March, 2018 i.e. well within the due date. And so on ............... ... ... .... the details are given in the enclosed summary for both PF and ESIC. The Salary Expenses ledger, Salary Payable ledger, PF Payable Ledger, ESIC payable ledger, PF and ESIC Challans for the month of Feb 2018 are enclosed at Pages 53-100 on test check basis being voluminous and very bulky. In view of his above submissions, ld. AR submitted that the matter may be remitted to the Assessing Officer for verification. 6. As regards ground no.5, ld. AR for the assessee submitted that the assessee received orders worth Rs 10,659,188/- (Including the GST and levies) from Whirlpool of India Limited ("Whirlpool") to provide the services of Glow sign Boards and Sun Boards. He submitted that the assessee provided the services and raised the invoices from time to time as per the summary at Pages 101-102 of the paper book and the invoices so raised were recorded as revenue under the head Sale of Services and offered to Tax. He further submitted that a copy of Ledger account of Whirlpool of India Limited....
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.... relevant decision of the coordinate Bench is as under :- "5. In so far as employees contributions towards PF & ESI it is noticed that the issue as to whether the due date under PF/ESI Acts should be as per the calendar month for which the salary is payable or from the month in which the salary is paid to the employee by the employer came up for adjudication in the case of Sentinel Consultants Pvt. Ltd. Vs. ACIT (supra) and the Tribunal restored the issue to the file of the AO with the following observations:- "9. We have carefully considered the rival submissions and perused the material available on record. The disallowance of employees' contribution to PF/ESIC for breach of condition under Section 36(1)(va) is in controversy. 9.1 We notice at the outset that an opportunity was given via electronic platform of the deptt. For the proposed adjustments and in the absence of e-response, the adjustments were carried out the CPC-Bangluru and intimation was issued 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 re....
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....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." 6. We find similar view has been taken by the co-ordinate benches in the cases of B. L. Kashyap & Sons Ltd. (supra) and VVDN Technologies Pvt. Ltd. (supra). The ld. Counsel submits that in view of these decisions the matter may be restored to the Assessing Officer to ascertain the due date for remittance of the PF/ESI contributions of employees. Considering the decisions of the coordinate benches referred to above we restore this issue to the file of the Assessing Officer to decide in the light of the observations made by the Tribunal in the case of Kanoi Paper & Industries Ltd. Vs. ACIT (supra). Needless to say that the Assessing Officer shall provide adequate opportunity of being heard to the assessee and the assessee is at liberty to provide all the necessary information in support of its contention." 9. Since the a....