Income Tax Appellate Tribunal - Pune
Deputy Commissioner Of Income-Tax, ... vs Prakash Dhondiram Koli, Kolhapur on 4 August, 2023
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCHES "B", PUNE
BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND
SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER
Miscellaneous Application No.56/PUN/2023
(arising out of ITA No.377/PUN/2021)
Assessment Year : 2019-20
DCIT, CPC, Vs. Prakash Dhondiram Koli
Bengaluru C/o Sanjay Vhanbatte and Company,
Chartered Accountants, CTS No.245,
C/1, First Floor, Mahalaxmi Bank
Building, Near Kelavkar Hospital,
Tarabai Park, Kolhapur - 416003
PAN : AZHPK7510P
(Applicant) (Respondent)
Assessee by : Shri Pramod S Shingte
Revenue by : Shri Uma Shankar Prasad
Date of Hearing : 04-08-2023
Date of Pronouncement : 04-08-2023
ORDER
PER S.S. VISWANETHRA RAVI, JM :
This Miscellaneous application by the Revenue is directed against the order passed by the Tribunal on 22-06-2022 in relation to the assessment year 2019-20.
2. The facts of the case are that the Assessing Officer (AO) made disallowance of Rs.24,74,849/- in the intimation u/s.143(1) of the Act on the ground that the assessee deposited the Employees‟ share of EPF and ESI etc. belatedly. The Tribunal in its order u/s.254(1) observed that the Employees‟ 2 M.A.No.56/PUN/2023 Prakash Dhondiram Koli share was deposited prior to the due date of filing return u/s.139(1) and hence deduction was allowable under section 36(1)(va) of the Act. In reaching this conclusion, the Tribunal relied on the judgment of Hon'ble Himachal Pradesh High Court in CIT Vs. Nipso polyfabriks Ltd. (2013) 350 ITR 327 (HP).
3. The Revenue has moved the instant Miscellaneous Application urging that the view taken by the Hon‟ble Himachal Pradesh High Court in Nipso polyfabriks Ltd. has since been overruled by the Hon‟ble Supreme Court in Checkmate Services P. Ltd. & Ors. VS. CIT & Ors. (2022) 448 ITR 518 (SC), holding that the deduction of the Employees‟ share can be allowed u/s.36(1)(va) only if it is deposited before the time limit under the respective statutes and not by the due date u/s.139(1) of the Act. It was, thus, urged by the ld. DR that the order earlier passed by the Tribunal granting the deduction, required rectification. No serious objection was taken by the ld. AR to the grievance of the Revenue.
4. We have heard the rival submissions and perused the relevant material on record. There is no dispute on the fact the law prevalent at that time of passing the order u/s.254(1) was in 3 M.A.No.56/PUN/2023 Prakash Dhondiram Koli favour of the assessee by virtue of certain judgments, including Nipso polyfabriks Ltd., granting deduction u/s.36(1)(va) of the employees‟ share of EPF etc. even if the deposit was made after the due date under respective Acts but before the time limit provided for filing the return u/s.139(1) of the Act. Such favourable view has since been reversed by the Hon‟ble Supreme Court in the case of Checkmate Services P. Ltd.(SC). In view of the latest judgment of the Hon‟ble Supreme Court, which is binding under Article 141 of the Constitution, the benefit of deduction allowed by the Tribunal in its order u/s 254(1), requires rectification. Making necessary rectification, we hold that the disallowance made by the AO has to be sustained. It is ordered accordingly.
5. In the result, the Miscellaneous Application is allowed. Order pronounced in the Open Court on 4th August, 2023.
Sd/- Sd/- (R.S.SYAL) (S.S. VISWANETHRA RAVI) VICE PRESIDENT JUDICIAL MEMBER पण
ु े Pune; दिन ांक Dated : 4 August, 2023 th GCVSR 4 M.A.No.56/PUN/2023 Prakash Dhondiram Koli आदे श की प्रतिलिपि अग्रेपिि / Copy of the Order is forwarded to :
1. अपील र्थी / The Appellant;
2. प्रत्यर्थी / The Respondent;
3. The CIT-TDS, Pune
4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे "B" / DR „B‟, ITAT, Pune;
5. ग र्ड फ ईल / Guard file आदे शानस ु ार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune Date
1. Draft dictated on 04-08-2023 Sr.PS
2. Draft placed before author 04-08-2023 Sr.PS
3. Draft proposed & placed JM before the second member
4. Draft discussed/approved JM by Second Member.
5. Approved Draft comes to Sr.PS the Sr.PS/PS
6. Kept for pronouncement on Sr.PS
7. Date of uploading order Sr.PS
8. File sent to the Bench Clerk Sr.PS
9. Date on which file goes to the Head Clerk
10. Date on which file goes to the A.R.
11. Date of dispatch of Order.
*