TMI Blog2019 (6) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... Reference to fifteen days of the close of the month must be in relation to the month during which the payment of wages is to be made and corresponding liability to deduct employee s contribution to the fund arises. The expression within fifteen days of the close of every month therefore must be interpreted as having reference to the close of the month, for which, the wages are required to be paid with corresponding duty to deduct employee s contribution and to deposit the same in the fund. - Decided against assessee. - R/TAX APPEAL NO. 1329 of 2018 With R/TAX APPEAL NO. 1330 of 2018 - - - Dated:- 11-6-2019 - MR J. B. PARDIWALA For The Appellant (s) : MRS MAUNA M BHATT (174) For The Opponent (s) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irly pointed out that the substantial question of law, which has been raised by the Revenue is no longer res integra and the same has been decided by a Coordinate Bench of this Court in favour of the Revenue. Mr. Hemani invited the attention of this Court to a decision delivered by a Coordinate Bench dated 15th October 2018 in the case of M/s Checkmate Facility and electronic Solutions Pvt Ltd vs. Deputy Commissioner of Income Tax Circle 1 rendered in the R/Tax Appeal No.1256 of 2018. We quote the entire judgement delivered by the Coordinate Bench as follows: 1. Appellantassessee has challenged the judgment of the Income Tax Appellate Tribunal dated 22.03.2018. Following questions are presented for our consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to all such deductions and late depositing the contributions in the order of assessment. All these deposits would indicate that the assessee had made the deposits late beyond 20th of Month following the month for which such deduction was being made. The date of 20th of each month was chosen by the Assessing Officer was made considering the normal period of 15 days for making deposit and a further grace period of five days specified under the statute. Since the assessee was delayed in making the deposits even beyond such extended period, he applied the disallowance in terms of section 36(1)(va) of the Act. 3. Learned counsel for the appellant would not dispute that the issue of disallowance of late deposited employees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. Section 38 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, becomes relevant. Subsection (1) thereof reads as under: ( 1) The employer shall, before paying the member his wages in respect of any period or part of period for which contributions are payable, deduct the employee s contribution from his wages which together with his own contribution as well as an administrative charge of such percentage [of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon) for the time being payable to the employees other t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e required to be paid with corresponding duty to deduct employee s contribution and to deposit the same in the fund. 6. Learned counsel for the appellant is therefore not correct in contending that if such wages are paid in the following month, the liability to deposit the employee s contribution to the fund gets differed by another month. 7. Tax Appeal is therefore dismissed. 6 In view of the aforesaid, this Tax Appeal succeeds and is hereby allowed. The impugned order passed by the Tribunal dated 27th June 2018 referred to above is hereby quashed and set aside. Consequently, the connected Tax Appeal also succeeds and is also allowed. 7 The substantial question of law ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
