2025 (8) TMI 955

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.... additions of Rs. 38,73,775/- on account of delay in depositing the employees' contribution to the provident fund. 2. The learned Additional / Joint Commissioner of Income Tax (Appeals) erred in not affording reasonable opportunity to the appellant to explain its case thereby violating the principle of natural justice. 3. The learned Additional / Joint Commissioner of Income Tax (Appeals) erred in applying the Apex Court Judgment without appreciating the peculiar facts and circumstances of the appellant's case. 4. The learned Additional / Joint Commissioner of Income Tax (Appeals) failed to appreciate that delay in deposit of employees contribution occurred due to the circumstances beyond the control of th....

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....addition the appellant preferred appeal before the learned CIT appeal/ ADDL/JCIT(A) Faridabad. 3.1. Since the assessee remained absent and did not furnish any reply on 2 opportunities provided by Ld. Addl/JCIT(A) the appeal was dismissed by Ld. Addl/JCIT(A) after following the judgement of Checkmate services (P) LTD vs CIT (2022) 143 taxmann.com 178 SC, by observing as under 4.5 Respectfully following the above view endorsed by the Hon'ble Supreme Court in which the Hon'ble Court has dealt with various rulings and finally concluded the matter in favor of Revenue; the disallowance of Rs. 38,80,972/-made under Section 36(1)(va) of the Act, on account of delayed payment of Employees Contribution to PF/ESI u/s 143(1) is conf....

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..... 38,80,972/- under section 36(1)(va) of the IT act on account of the delay of one-day. 4.2. Learned AR submitted before us that when no penalty was imposed in the PF act for the above said delay of one-day, observing the same, no penalty should also be imposed under the income tax act. In support of its contentions learned AR relied on various decisions passed by coordinate benches of this Tribunal, as under wherein applying the doctrine of impossibility of performance, no disallowance was made. FIL India Business & Research Services (P.) Ltd (154 taxmann.com 251)(Del) Mahesh Nemichandra Ganeshwade (32 CCH 0281) (Pune) National Aviation Co. of India (29 CCH 0807) (Mum) Jagdish Malpani (23 CCH 0574) (I....

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....ld not be deposited on 15th June but was deposited on 16 June 2021 that is with delay of one-day . The above delay of one-day was reported in the audit report and accordingly the CPC made disallowance under section 36 (1)(va) of the IT act of Rs. 38,80,972/- and added the same amount to the income of the assessee. Ld. Addl/JCIT(A) decided the appeal ex- parte, since the assessee could not appear on the dates of hearing provided by Ld. Addl/JCIT(A). However the assessee claimed that he sought adjournment on 2nd hearing but the same was not considered by Ld. Addl/JCIT(A). It is the claim of the learned counsel of the assessee that Ld. Addl/JCIT(A) erred in dismissing the appeal solely by relying on the judgement passed by Hon'ble Supreme Cour....