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TMI Blog2023 (7) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. CIT (A) dated 22.12.2022 passed in respect of the appeal emanating from the intimation issued to the assessee u/s 143(1) of the Income tax Act, 1961 (here in after referred to as the "Act") dated 09.07.2020 is bad in law and on facts. 2. That the Id. CIT(A) has erred in law and on facts by confirming the disallowance of Rs 19,37,001/- made u/s 36(1)(va) read with section 43B of the Act on account of late payment of employee contribution towards EPF and ESIC beyond the due date specified in the respective Acts, but before the due date as defined under section 139 of the Act, under the intimation /order passed u/s 143(1) of the Act dated 09.07.2020. 3. That the ld. CIT(A) was unwavering in accepting the plea of the assessee that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . ADIT, CPC, Bangalore under section 143(1)(a) of the Act by confirming the disallowance of late contribution of the EPF and ESIC without appreciating that the scope of section 143(1)(a) of the Act is a limited one which is not for a debatable adjustment or something which is controversial. 5.1 The Id. CIT(A) has also failed to appreciate that at the time of processing of the return of income of the assessee u/s 143(1) of the Act, the decisions of the Hon'ble Supreme Court and jurisdictional Delhi High Court and several other High Courts were in favour of the assessee on the issue that if the employee contribution towards EPF and ESIC were deposited after the due dates mentioned in the respective Acts but before the filing of return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance of late payment of PF& ESI Rs. 26,42,189/- (Employee's Contribution) and profit on sale of fixed asset of Rs. 2,066/-. Aggrieved by intimation dated 09/07/2020, the assessee preferred an Appeal before the CIT(A). The ld. CIT(A) vide order dated 22/12/2022 upheld the disallowance on account of late payment of ESI of Rs. 6,64,200/- and PF of Rs. 19,77,986/- of Employees Contribution. Further, in so far as addition of Rs. 2,066/- on account of profit of sale of fixed asset the same has been remanded to the file of the A.O. for adjudicating the issue afresh. Aggrieved by the order of the ld. CIT(A) the assessee preferred the present appeal on the grounds mentioned above. 4. The Ld. Counsel for the assessee fairly submitted that the is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Departmental Representative relied on the order of the CIT(A). 7. We have heard both the parties and perused the material available on record. The only issue remains for consideration in the present Appeal that whether the contributions of ESIC and EPF made by the Assessee with one day delay is allowable when the due date for payment of ESIC and EPF contributions prescribed in the respective acts of ESI & PF falls on Sunday or gazetted holiday?. 8. It is not in dispute that the assessee had deposited ESI & EPF with one day delay and it is also not in dispute that the due date under the respective Acts falling either on Sunday or gazetted holiday. The details of the payments are as under:- ESI for AY 2019-20 Month of deduction pertai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall apply to any act or proceeding to which the Indian Limitation Act, 1877 20, applies . 2). This Section applies also to all 19 [Central Acts] and Regulations made on or after the fourteenth day of January, 1887." 11. Thus, in our opinion, considering the fact that the due date for depositing the contribution of ESIC & EPF falls on Sunday and gazetted holiday, the said delay of one day deserves to be condoned as per Section 10 of General Clauses Act. Further it is also observed that the assessee has no intention not to deposit the contribution of ESI & EPF well within the time, depositing the contribution very next day of Holiday proves the bona-fide of the Assessee. Therefore, in our opinion, the authorities have committed error in d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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