2025 (1) TMI 816

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.... the Income Tax Act, 1961 (for short the 'Act') has been filed against order dated 13.03.2024, passed by the Income Tax Appellate Tribunal, Hyderabad 'A' Bench, Hyderabad (for short 'the Tribunal'). 4. The subject matter of the appeal pertains to the assessment year 2019-2020. 5. Facts giving rise to filing of this appeal in a nutshell are that the appellant (hereinafter referred to as 'the assessee') filed returns of income for the assessment year 2019-2020 on 22.11.2019. In the returns, the assessee disclosed the income as NIL after claiming set off and brought forward the loss of Rs. 16,60,58,649/-. Notice under Section 143 (1) (a) of the Act was issued to the assessee proposing to disallow the deduction of a sum of Rs. 1,85,76,482....

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....s, the amount cannot be claimed as a deduction. It was further held that, admittedly, the assessee had not deposited the employees' PF and ESI within the statutory dates but has deposited the same beyond the statutory dates. Accordingly, the Tribunal dismissed the appeal preferred by the assessee. Hence, this appeal. 8. Learned counsel for the assessee submitted that the issue involved in the appeal has not attained finality and is debatable. Therefore, the appeal should be admitted. 9. We have considered the submission made by learned counsel for the assessee and have perused the record. 10. The Supreme Court, in Checkmate Services (P) Ltd. (supra), in paragraph 52, has held as under: "When Parliament introduced Section 4....

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....e one hand, it brought into the fold of "income" amounts that were receipts or deductions from employees' income, at the time, payment within the prescribed time - by way of contribution of the employees' share to their credit with the relevant fund is to be treated as deduction (Section 36 (1) (va)). The other important feature is that this distinction between the employers' contribution (Section 36 (1) (iv)) and employees' contribution required to be deposited by the employer (Section 36 (1) (va)) was maintained - and continues to be maintained. On the other hand, Section 43B covers all deductions that are permissible as expenditures, or out[1]goings forming part of the assessees' liability. These include liabilities such as tax liability....