Diamour Jewels Pvt. Ltd. Vs Centralised Processing Centre (ITAT Mumbai)
Summary: The appeal filed by the assessee was directed against the order of Ld. CIT(A), Chandigarh, vide order no. ITBA/ APL/S/250/2024- 25/1064054431(1), dated 12.04.2024, passed against the intimation issued by Centralised Processing Centre, Bengaluru, (CPC) u/s. 143(1) of the Income-tax Act, 1961, dated 22.09.2022 for Assessment Year 2021-22.
The assessee had raised grounds concerning disallowance of employees’ contribution to PF and ESI, reliance on the circular issued by Employees’ Provident Fund Organisation dated 15.05.2020 bearing Ref. No. C-I/Misc/2020-21/Vol.1/1112, and alleged violation of principles of natural justice in passing the CIT(A)’s order on 12.04.2024 despite submissions made on 10.04.2024.
The assessee filed its return of income on 07.02.2022 reporting total income of Rs.1,96,51,570/-. The return was processed by CPC u/s. 143(1), whereby disallowance of Rs.6,46,040/- (correct figure is Rs.6,26,351/-) was made u/s. 36(1)(va) towards delayed deposit of employees’ contribution of PF and ESI. The delay related to April 2020 and May 2020, when lockdown was imposed during the COVID-19 pandemic. The due dates for deposit for these two months were 15.05.2020 and 15.06.2020. The assessee deposited the delayed amounts in June 2020 when there was relaxation in lockdown and banking was permitted.
