TaxTMI 
TaxTMI 
2023 (10) TMI 1519
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....ppeals as well as Cross Objections are as under: ITA No.ITA No.379/Del/2023 by the assessee (A.Y 2020-21) "1. That on the facts and circumstances of the case, the order passed by the L.d. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre CIT(A), NFAC ("Ld.CIT(A)") dated 30.12.2022 (hereinafter referred to as 'impugned appellate order') is erroneous, arbitrary, without jurisdiction, illegal and bad in law. 2. That on the facts and circumstances of the case and in law, intimation order passed by ADIT, CPC, Bengaluru (hereinafter referred to as "Ld AO") u/s 143(1) of the Income Tax Act making an adjustment of Rs.8.06,89,964/- in this case is bad in law, without jurisdiction, illegal and therefore the said intimation order is liable to be quashed. 3. On the facts and circumstances of the case and in law, the 1.d. AO passed the intimation order u/s 143(1) making disallowance of Rs.8,06,89,964/- u/s 36(1)(va) on account of late deposit of employees contribution towards PF/ESI under the head income from business in violation of the principles of natural justice. 4. That the Ld. CIT(A) grossly erred in placing reliance on amended provisions of Section 3....
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.... the case, Ld.CIT(A) has erred in deleting additions mad by the AO-CPC on account of disallowance of deduction claimed u/s 36(1)(va) of the Income Tax Act, 1961 of Rs.6,85,16,048/- made on account of delayed deposit of employee contribution to PF/ESI as per relevant statues, by observing that it was deposited before the due date of filing of return of income, an observation contrary to relevant provisions of S. 36(1)(va) r.w.s. 43B of the Income Tax Act, 1961. 2) Whether an assessee is eligible for deduction u/s 36(1)(va) for sum received by assessee from his employees (PF/ESI contribution) to which provisions of sub-clause (x) of clause (24) of Section 2 apply, even if such sum was not credited by the assessee to the employee's account in the relevant fund or funds on or before the due date, when the relevant provisions of S. 43B for the deduction only on actual payments made on or before the due date. 3) The appellant craves leave to add, alter or amend any of the ground(s) of appeal before or during the course of hearing of the appeal." Consolidated/Common Grounds raised assessee's C.Os. "1. On the facts and circumstances of the case and in law, intimation order passe....
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....eal No. 2833 of 2016, vide order dated 12/10/2022, wherein it is held that if the Employee's contribution to PF/ESI has been paid beyond the time prescribed under the relevant PF Act, then same is not allowable u/s 43B of the Income Tax Act. 4. Further, the Ld. Counsel for the assessee contended that the Employer would be at liberty to make payment of contribution within 15 days from the end of the month during which the disbursement of salary is actually made and the contribution to the PF/ESI are thus generated and contended that the Assessee paid salary/remuneration to the staffs for the month in the subsequent month, therefore employer is required to deposit PF/ESI Contribution within 15 days from the close of every month. The Ld. Counsel for the Assessee relied on the following judicial pronouncements in support of her contentions: i). ACIT v. M/s VVDN Technologies Pvt. Ltd. in ITA no.164/Del/2023 dated 04.07.2023 (ITAT Delhi) ii). Aroma Aromatics & Flavours v. ACIT ITA no. 1634/Del/2020 dated 17.03.2023(ITAT Delhi ) iii). Prime Comfort Products Pvt. Ltd. v. ACIT ITA no.530/Del/2023 dated 26.04.2023 (ITAT Delhi) iv).The Master Polishers v. ADIT in ITA no. 252/Mum/2023....
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....to ESI/PF, which was made by the CPC as an adjustment and further sustained in rectification order u/s 154 of the Act. The Ld. CIT(A) has upheld the disallowance in view of binding precedent of Hon'ble Supreme Court in the case of Checkmate Services Pvt. Ltd. v. CIT in Civil Appeal No. 2833 of 2016, observing as under: "4. Having pursued the rectification order, the grounds of appeal and the written submissions the issue of admissibility of payment of employees' contribution of SIC/PF beyond the due date as per the relevant Statute, raised through ground number 1 is hot tenable in view of decision of the Hon'ble Supreme Court in the case of Checkmate Services pvt. Ltd. VS CIT in Civil Appeal No2833 of 2016 with CA No2830/2016, CA No. 159/2019, CA No.2832/2016 and CA No: 2831/2016 vide judgment dated 12.10.2022, wherein it was held that deduction us 36(1)(va) of the IT Act is admissible only of the amount so received from employees for PF/ESIC is credited in specified account within the due date as per the relevant Statute. In the instant appeal, it is an admitted position of the appellant that there was delay in crediting the contribution so collected in the specified....