Mrutyunjay Rout, Prop. M/s. Sopny Brothers vs. ACIT, Balasore Circle

Parties Involved

Facts Summary

The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Appeals) in the case of Mrutyunjay Rout, Prop. M/s. Sopny Brothers, for the assessment year 2017-18. The issue involved in the assessee's appeal was regarding the disallowance of employee's contribution to Provident Fund (PF) and Employee State Insurance (ESI), admittedly paid during the relevant assessment year but after the due date prescribed under the respective Act. The assessee argued that the issue should be restored to the file of the Assessing Officer in view of a decision of the Co-ordinate Bench of the Tribunal in the case of Nirakar Security & Consultancy Services Pvt Ltd. The respondent, however, submitted that the issue was squarely covered by the decision of the Hon’ble Supreme Court in the case of Checkmate Services Pvt Ltd. and M/s. Harrisons Malayalam Ltd.…

Legal Issues

• 1. Whether the disallowance of delayed payments made to EPF and ESI is allowable as a deduction under Section 37 of the Income Tax Act?
• 2. Whether the Tribunal is right in its order/direction to exclude the profit on sale of two estates from computing book profit for the purpose of Section 115JB as agricultural income?

Judgment Outcome

Decided in favour of Assessee.

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