The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has recently, in an appeal filed before it, held that deduction under Section 36(1) (va) is allowable only if employees’ share in relevant funds are deposited before due date stipulated in the respective Acts.
The aforesaid observation was made by the Delhi ITAT, when an appeal was preferred before it by the assessee, as directed against the order of the Commissioner of Income Tax (Appeals), New Delhi, relating to the Assessment Year 2019-20.
The ground of the assessee’s appeal being that the Commissioner of Income Tax (Appeals), New Delhi, has erred both in law and on facts in upholding the addition under section 36(1)(va) of Rs.1,79,407/- although it was submitted that, second proviso to section 43B specifically make reference to section 36(1)(va) of the Income Tax Act for due date of deposit, the brief facts of the case were that the Assessee was a company stated to be engaged in the business of manufacturing of components for automobile industry. And the Assessee had electronically filed its return of income for the A.Y. 2019-20, declaring total income of Rs.2,06,67,150/-.
In the intimation issued under Section 143(1) of the Income Tax Act, the total income was computed at Rs.2,08,46,560/-. And being aggrieved by this intimation, the assessee had carried the matter before CIT(A) who vide his order, dismissed the appeal of the assessee.
And it is being further aggrieved by the order of CIT(A), that the assessee is now in appeal before the Delhi ITAT.
With no representation being made on behalf of the assessee despite notice of hearing being issued, Shri Kanv Bali, the Sr. D.R. on behalf of the Revenue, supported the order of the lower authorities and submitted that in view of the decisions of the Apex Court in the case of Checkmate Services Pvt. Ltd. and others vs. CIT & others, no interference to the order of lower authorities was called for.
Hearing the contentions of the D.R and perusing the materials available on record, the ITAT Panel of Anubhav Sharma, the Judicial Member and Anil Chaturvedi, the Accountant Member, thus held:
“We are of the view that the ratio of the decisions of Hon’ble Apex Court is applicable to the present facts. We therefore, following the decision of Hon’ble Apex Court in the case of Checkmate Services Pvt. Ltd., find no reason to interfere with the order of lower authorities and thus the grounds of assessee are dismissed.”
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