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2023 (11) TMI 1106 - ITAT RAIPURDelayed deposit of the employees share of contributions towards EPF/ESIC u/s. 36(1)(va) - adjustments carried out u/s 143(1) - HELD THAT:- The aforesaid issue had been looked into in the case of Satpal Singh Sandhu [2023 (5) TMI 1274 - ITAT RAIPUR] and Gurmeet Singh Hora [2023 (8) TMI 1383 - ITAT RAIPUR]. The Tribunal while deliberating at length on the aforesaid issue had after drawing support from the orders of Kalpesh Synthetics (P) Ltd. [2022 (5) TMI 461 - ITAT MUMBAI] and P.R. Packaging Service [2022 (12) TMI 841 - ITAT MUMBAI] had held that no such disallowance of the delayed deposit of the employee’s share of contribution towards labour welfare fund could have been made in the hands pf the assessee company while processing its return of income u/s. 143(1)(a) Disallowance u/s. 43B(a) of the Act towards service tax paid beyond the “due date” specified for filing of return of income u/s. 139(1) - HELD THAT:- We may herein observe that in the case of M/s. Ganapati Motors[2017 (4) TMI 1613 - CHHATTISGARH HIGH COURT] had held that in a case where the assessee had not charged VAT to its profit and loss account, then, despite the fact that the liability may still be unpaid it could not have been added u/s. 43B of the Act as the same was not claimed as a deduction in the books of accounts. Thus no addition can be made of an assessee’s unpaid VAT tax liability that was not charged to the profit and loss account, there is substance in the claim of the Ld. AR that based on the same analogy there was no justification for the A.O to have made an addition u/s. 43B of the amount of service tax payable as the same was not charged to the latters profit and loss account. Thus no means could have been dubbed as an incorrect claim and brought within the realm of the adjustments contemplated in clause (a) of Section 143(1) Appeal of assessee allowed.
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