2023 (3) TMI 1386 - AT - Income Tax

Disallowance of delayed payment of employees contribution of PF and ESI - HELD THAT - As assessee made remittances before filing the return of income u/s 139(1) but not within the due date specified by the respective PF / ESI Acts. Therefore have no hesitation to come to a conclusion that the disallowance made by the AO as well as the Ld.CIT(A) needs no interference in view of the decision of Checkmate Services Pvt. Ltd 2022 (10) TMI 617 - SUPREME COURT Deduction u/s 80P - assessee has not filed the return of income on or before the due date specified u/s 139(1) - HELD THAT - As gone through the provisions of section 80AC(ii) amendment which made it clear that any deduction that is claimed under para c of Chapter VI A would be admissible only if the return of income in that case is filed within the prescribed due date. Therefore no claim under any of the provisions of para c of Chapter VIA would be admissible in the case of belated return. It present case return of income was filed beyond the due date of filing of return of income specified u/s 139(1) - it is a mechanical exercise and one that can be carried out by CPC very much within the scope of section 143(1)(a)(ii) of the Act. Therefore the contention of the assessee that the amendment made to section 143(1)(a)(v) is applicable w.e.f. 01.04.2021 has no application in the present case - Decided against assessee.

Summary

Issues:
Appeal against disallowance of deduction u/s 80P of the Income Tax Act and disallowance of delayed payments of employees' contribution for PF and ESI for the Assessment Year 2018-19.

Analysis:
1. The assessee filed a return of income claiming deduction u/s 80P but the AO disallowed the deduction and made disallowance of delayed payments of employees' contribution for PF and ESI. The AO passed an order u/s 154 without changes to the original order u/s 143(1).

2. The CIT(A) dismissed the appeal filed by the assessee. The Tribunal heard the appeals together and considered the grounds raised by the assessee, challenging the CIT(A)'s order. The issues raised included the correctness of disallowing deduction u/s 80P and the disallowance of delayed payments of employees' contribution for PF and ESI.

3. The Tribunal referred to a Supreme Court decision in a similar case and upheld the disallowance of delayed payments of employees' contribution for PF and ESI. Regarding the disallowance of deduction u/s 80P, the assessee argued that the amendment to section 80AC(ii) was not applicable for the relevant assessment year. However, the Tribunal held that the amendment was applicable, and the disallowance was justified as the return was filed beyond the due date specified u/s 139(1).

4. The Tribunal emphasized that the amendment to section 143(1)(a)(v) did not apply to the case, and the disallowance u/s 80P was correctly made and upheld by the CIT(A). The Tribunal dismissed the grounds raised by the assessee, citing a decision of the High Court of Madras supporting the disallowance.

5. In another case, where the assessee filed the return beyond the due date, the Tribunal applied the same reasoning and dismissed the appeal. The appeals of the assessees were ultimately dismissed by the Tribunal.

This detailed analysis of the legal judgment highlights the issues raised by the assessee, the arguments presented, and the Tribunal's decision regarding the disallowance of deduction u/s 80P and delayed payments of employees' contribution for PF and ESI for the Assessment Year 2018-19.