2023 (12) TMI 1351 - AT - Income Tax

Belated remittance of employees contribution to PF/ESI - Case of the assessee is that belated remittance of employees contribution to PF/ESI would also not to be taxable having regard to sec. 43B provided the same has been paid before the due date of filing of return u/s 139 and aforesaid disallowance is not called for and assessee, prayed for remitting the matter to the file of ld.AO for fresh adjudication HELD THAT - We do not find any serious objection to this effect from the ld.DR as against the contention made by the assesee before the authorities below and before us too. Thus, we find merit in the submission and case made out by the assesee. In that view of the matter, we under the present facts and circumstances of the case find it fit and proper to remit the issue to the file of the ld.AO to consider the details as provided by the assessee as summarized hereinabove and to pass speaking order in favour of the assesee after giving an opportunity of being heard to the assessee and to adduce evidence at the time of hearing the appeal before the ld.AO. Appeal of the assessee is allowed for statistical purposes.

Summary

Issues:
1. Disallowance of expenses under section 36(1)(va) of the Act based on tax audit report.
2. Claim of relief under section 43B of the Act for belated remittance of employees' PF/ESI contributions.
3. Request for remitting the matter to the Assessing Officer (AO) for fresh adjudication.

Analysis:
The appeal before the Appellate Tribunal ITAT Bangalore involved several key issues. Firstly, the disallowance of expenses under section 36(1)(va) of the Act was contested by the assessee. The disallowance was made based on the tax audit report, leading to a disagreement between the Revenue and the Assessee. The Assessee argued that the disallowance was not justified, particularly concerning the belated remittance of employees' PF/ESI contributions. The Assessee relied on section 43B of the Act, which provides relief if such payments are made before the due date of filing the return under section 139 of the Act.

Moreover, the Assessee presented detailed evidence regarding the salary payments and the dates of PF and ESI contributions. The Tribunal noted the details provided by the Assessee, highlighting the discrepancies between the due dates and the actual payment dates. The Tribunal acknowledged the Assessee's contentions and found merit in the case presented. Consequently, the Tribunal decided to remit the issue to the file of the AO for fresh adjudication.

The Tribunal emphasized the importance of considering the details provided by the Assessee and instructed the AO to pass a speaking order in favor of the Assessee after giving them an opportunity to be heard and present evidence. The Tribunal ultimately allowed the appeal of the Assessee for statistical purposes, indicating a favorable outcome for the Assessee in this particular case. The judgment was pronounced in the open court on 14th December 2023, concluding the legal proceedings before the Appellate Tribunal ITAT Bangalore.