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Kachan Metals Pvt. Ltd. vs. DY. CIT, Circle -8(1)

Case No: ITA No.2350/KOL/2024
Court: Income Tax Appellate Tribunal 'C' Bench, Kolkata
Date: 3/28/2025

Parties Involved

appellantKachan Metals Pvt. Ltd.
respondentDY. CIT, Circle -8(1)

Facts Summary

The assessee, Kachan Metals Pvt. Ltd., filed a return of income declaring a total income of ₹5,57,87,617/-. The return was processed under section 143(1) of the Act, and a disallowance of ₹5,18,414/- was made for delayed payment of ESI and EPF. This disallowance was made under section 36(1)(va) of the Act because the payments were not made within the due date. The assessee filed a rectification petition, which was rejected by the CPC under section 154 of the Act. In the appellate proceedings, the ld. CIT (A) dismissed the appeal, relying on the decision of the Hon'ble Supreme Court in Checkmate Services Pvt. Ltd. Vs. CIT (2022) 143 taxmann.com 178 (SC). The assessee argued that the delay was due to the unavailability of the banking portal on the due date.

Decision in favour of

Assessee

Legal Issues

  • 1. Confirmation of addition of ₹5,18,414/- by the ld. CIT (A) for delayed payment of PF and ESI.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

2 precedents cited in this judgement.

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Kachan Metals Pvt. Ltd. vs. DY. CIT, Circle -8(1) | ITA No.2350/KOL/2024 | 2025 | Opakhya