Delhi International Cargo Terminal Pvt. Ltd. Vs DCIT (ITAT Mumbai)
Mumbai ITAT: Typographical Error in Tax Audit Report Cannot Deny PF Deduction if Contribution Was Actually Paid Within Due Date
The Mumbai ITAT held that a mere typographical error in the Tax Audit Report cannot justify disallowance of employees’ Provident Fund (PF) contribution under section 36(1)(va) where the evidence establishes that the contribution was in fact deposited within the statutory due date. In this case, the tax auditor mistakenly reported the date of deposit as 11.01.2022 instead of the correct date 05.01.2023, leading CPC to make a disallowance of ₹6,65,674 while processing the return under section 143(1). The Tribunal noted that the incorrect date itself demonstrated a clerical mistake, as it preceded the relevant accounting period, and the PF challans clearly proved that the payment was made on 05.01.2023, before the due date of 15.01.2023.
The Tribunal further observed that the assessee had produced the PF challans and supporting documents before the appellate authority, but these were not properly considered. Since there was no actual delay in remittance, the Supreme Court’s decision in Checkmate Services (P.) Ltd. v. CIT (448 ITR 518) was held to be inapplicable. The matter was restored to the Assessing Officer only for the limited purpose of verifying the challans, with a direction to allow the deduction upon verification. The issue relating to unabsorbed depreciation was also restored to the Assessing Officer for fresh consideration. Accordingly, the appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The instant appeal of the assessee filed against the order of the Ld. Commissioner of Income Tax-Appeals ADDL/JCIT(A), Panaji [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for Assessment Year 2023-24, date of order 22.01.2026. The impugned order emanated from the order of the CPC, Bengaluru (for brevity the ‘Ld. AO’) order passed under section 143(1) of the Act date of order 27.03.2024.
