2022 (3) TMI 522

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of Employee s Provident Fund (EPD) and Employee s State Insurance Scheme (ESI) as deemed income of the employer under section 2(23)(x) - Decided in favour of assessee.
SHRI KUL BHARAT, JUDICIAL MEMBER Appellant by : None Respondent by : Shri Anil Kumar Sharma, Sr.DR ORDER Per Kul Bharat , JM This appeal filed by the assessee for the assessment year 2019-20 is directed against the order of Ld. CIT(A), National Faceless Appeal Centre ("NFAC") dated 26.08.2021. The assessee has raised following grounds of appeal:- 1. "That on the facts and circumstances of the case and in law, the Asst. Director of Income Tax, CPC, Bangalore ('the Ld. AO') has erred in law and facts in not providing the opportunity of being hea .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... has erred in upholding the adjustment made by Centralized Processing Center, Bengaluru vide intimation issued u/s. 143(1)(a) of the Act without even mentioning the clause of section 143(1)(a) under which the disallowance is alleged to fall while the Appellant contends that the disallowance is outside the scope of that section. 3. That on the facts and circumstances of the case and in law, the Ld. AO & Ld. CIT(A) have erred in disallowing the employee contribution to provident fund and ESI alleging the same ought to be paid within the due dates as prescribed under the relevant Acts and that the same is not allowable if paid before filing of the return of income for AY 2019-20. 3.1 That on the facts and circumstances of the case and in l .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 46,20,600/-. In computing the total income, an amount of ₹ 7,30,718/- was disallowed u/s. 36(1)(va) of the Act, being sum received from employees as contribution to the employees provident fund which was not credited to the employees account before the due date under the respective law. The disallowance was made by the Assessing Officer, which processing the return income as a prima facie adjustment, in accordance with the provisions of section 143(1)(a) of the Act. 4. Aggrieved against this, the assessee preferred appeal before Ld. CIT(A), who confirmed the addition. 5. Now, the assessee is in appeal before this Tribunal. 6. Ld. Sr. DR vehemently submitted that law is clear in this respect and he relied upon the decision of Ld. CI .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X