2022 (5) TMI 1337 - AT - Income Tax

Belated payment of employees contribution towards PF ESI made after the due dates specified in the relevant statute - HELD THAT - As the issue involved in the present case as well as all the material facts relevant thereto are similar to the case of Gujarat State Road Transport Corporation 2014 (1) TMI 502 - GUJARAT HIGH COURT we respectfully follow the decision of Hon ble jurisdictional High Court rendered in the said case and uphold the impugned order of the learned CIT(A) confirming the disallowance made by the Assessing Officer on account of belated payment of employees contribution towards PF ESI. - Decided against assessee.

Summary

Issues: Disallowance of belated payment of employees' contribution towards PF & ESI.

The judgment deals with an appeal filed by an HUF assessee against the disallowance of Rs.1,14,16,549 made by the Assessing Officer and confirmed by the CIT(A) on account of belated payment of employees' contribution towards PF & ESI. The assessment was reopened based on similar disallowances in previous years. The Assessing Officer disallowed the belated payment and added it to the total income of the assessee. The assessee challenged this disallowance before the CIT(A), citing various judicial pronouncements. The CIT(A) upheld the disallowance, relying on decisions of the Gujarat High Court. The assessee then appealed to the Tribunal.

During the hearing, no one appeared on behalf of the assessee. The Tribunal noted that the issue was covered in favor of the Revenue by the Gujarat High Court's decision in a similar case. The Tribunal referred to specific paragraphs of the High Court judgment, emphasizing that only one view was possible based on the relevant provisions of the Income Tax Act. The Tribunal upheld the CIT(A)'s order confirming the disallowance of the belated payment of employees' contribution towards PF & ESI. The appeal filed by the assessee was dismissed, and the Tribunal pronounced the order on 5th May, 2022 at Ahmedabad.