ITA No. 1239/Del/2023

Parties Involved

Facts Summary

The appeal in ITA No.1239/Del/2023 for AY 2019-20, arises out of the order of the Commissioner of Income Tax (Appeals)-24, New Delhi against the order of assessment passed u/s 143(1) of the Income-tax Act, 1961 by the Assessing Officer, ADIT, CPC, Bengaluru. The Ground Nos. 2 & 3 raised by the assessee are challenging the confirmation of addition made on account of employees contribution to PF and ESI by the ld. CIT(A). The employees’ contribution to provident fund and ESI were deposited by the assessee to the Government account beyond the due dates prescribed under the respective acts but well before the date of filing the return of income. The ld. AR had submitted before the ld. CIT(A) that there were certain clerical mistakes that had inadvertently crept in the tax audit report with regard to wrong mentioning of dates and sought correction for the same. The ld. CIT(A) accordingly directed the ld. AO to verify the evidences with regard to the correctness of the claim made by the assessee. The ld. AO is directed to verify the correctness of the claim of the assessee with regard to the due dates for remittance for each month and the actual date of remittance thereon and decide the issue in accordance with law in the light of decision of Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd Vs. CIT reported 448 ITR 518 (SC). The Ground No. 1 raised by the assessee is challenging the levy of interest u/s 234C of the Act. The law is well settled that interest u/s 234C…

Legal Issues

• 1. Ground Nos. 2 & 3: Challenge to confirmation of addition made on account of employees contribution to PF and ESI by the ld. CIT(A).
• 2. Ground No. 1: Challenge to levy of interest u/s 234C of the Act.

Judgment Outcome

Decided in favour of Assessee.

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