The Chennai bench Income Tax Appellate Tribunal ( ITAT ) directs readjudication due to the dispute with respect to the remittance of employees contribution towards the provident fund and Employee State Insurance ( ESI ).
The Assessee Gurusamy Adhinarayanan filed return of income for the assessment year 2019-20 on 31.10.2019 declaring total income of ₹ 70,84,090/-. The assessment has been completed under section 143(1) of the Income Tax Act,1961 by making disallowance of employees contribution towards Provident Fund and ESI not deposited on or before the due date under section 36(1)(va) of the Income Tax Act.
On appeal, by following the decision in the case of Checkmate Services Pvt. Ltd. v. CIT the CIT(Appeal) confirmed the additions and dismissed the appeal of the assessee.Hence the assessee filed another appeal before the tribunal.
During the adjudication N. Kumaresh, the counsel for assessee submitted that the due date of remittance being Government holidays (in May & July), it cannot be reckoned as delay when the assessee has remitted the payment on the next immediate working day, as was done in most of the months.
D. Hema Bhupal, Department representatives argued that since the payments are made in the electronic mode and whether the office of the Department or the assessee are closed on a certain date or not, being gazetted holidays, cannot be ignored while reckoning the due date.
After analyzing the submission of both parties the bench comprising V. Durga Rao (Judicial Member) and Manjunatha G (Accountant Member) directed readjudication due to the dispute with respect to the remittance of employees contribution towards the provident fund and Employee State Insurance.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
