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2021 (8) TMI 791 - AT - Income TaxRevision u/s 263 - belated employee’s contribution to PF and ESIC funds - whether the disallowance is called in the case of delay in remittance of employee’s contribution to PF and ESIC but paid within the due date for filing of the return of income is covered in favour of the appellant by the decision of Hon’ble Jurisdictional High Court in the case of GhatgePatil Transports Ltd. [2014 (10) TMI 402 - BOMBAY HIGH COURT]? - HELD THAT:- AO had not followed the CBDT Circular No.22/2015 dated 17.12.2015 which mandates the Assessing Officer to disallow the belated employee’s contribution to PF and ESIC funds beyond the due dates under relevant statute. The reasoning of the ld. PCIT is against the settled position of law that the decision of the Hon’ble Jurisdictional High Court or the Hon’ble Supreme Court always overrides the Circular issued by the CBDT (supra). The CBDT is not competent to pronounce upon any point of law. Therefore, the Assessing Officer is bound to follow the law declared by the Hon’ble Supreme Court of India and the Jurisdictional High Courts. The law declared by the Hon’ble Supreme Court is binding on the all the authorities u/s 141 of the Constitution of India. The Commissioner of Income Tax in exercise the powers vested u/s 263 of the Act cannot do something, what the Assessing Officer himself cannot do. Thus, the very premises on which revision was sought to be made by ld. PCIT had failed, and resultant order has no legs to stand. It is salutary principle of law that once the foundation is removed, the superstructure falls, which is based maxim sublato fundamento cadit opus. Accordingly, the impugned order of the ld. PCIT passed u/s 263 of the Act cannot be sustained under the law and is hereby quashed - Appeal filed by the assessee is allowed.
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