2020 (8) TMI 127 - AT - Income Tax

Delay in deposit of employees contributions towards CPF, GPF and ESI u/s 36(1)(va) - HELD THAT - As decided in own case 2009 (4) TMI 489 - ITAT JAIPUR-A contribution towards Provident Fund and ESI and the said issues have already been decided against the Revenue as relyig on M/S. STATE BANK OF BIKANER JAIPUR AND JAIPUR VIDYUT VITARAN NIGAM LTD. 2014 (5) TMI 222 - RAJASTHAN HIGH COURT - Decided against revenue.

Summary

Issues:
1. Dispute over deletion of addition made on account of delay in deposit of employees contributions towards CPF, GPF, and ESI under section 36(1)(va) of the Income Tax Act, 1961.

Detailed Analysis:
1. The appeal by the Revenue challenged the order of the ld. CIT(A)-1, Jodhpur for the A.Y. 2007-08 regarding the addition made by the AO under section 143(3) of the Act.

2. The dispute centered around the deletion of the addition of ?19,73,42,499 related to the delay in depositing employee contributions towards CPF, GPF, and ESI.

3. The ld. CIT(A) deleted the addition citing various judicial precedents, including the Supreme Court's decision in CIT vs. Alom Extrusions Ltd. and the Delhi High Court's ruling in CIT vs. Aimil Ltd & Ors.

4. The ITAT carefully reviewed the AO's addition and the assessee's submissions, noting that the AO disallowed the amount based on the delay in depositing the contributions after the prescribed due date.

5. The ITAT found that the issue was already settled in the assessee's favor by the ITAT Jaipur Bench for the A.Y. 2006-07 and upheld by the Jurisdictional High Court in a subsequent order.

6. Referring to the High Court's observation in another case, the ITAT concluded that the questions related to contributions towards Provident Fund and ESI had been decided against the Revenue, and there was no reason to interfere with the CIT(A)'s order.

7. Consequently, the ITAT dismissed the appeal of the Revenue, upholding the deletion of the addition made by the AO regarding the delay in depositing employee contributions towards CPF, GPF, and ESI.

This detailed analysis of the judgment provides a comprehensive understanding of the legal issues involved and the reasoning behind the decision rendered by the Appellate Tribunal ITAT Jaipur.