Ranjeet Kumar Budhia Vs DCIT CPC (ITAT Ranchi)
ITAT Ranchi directed CIT(A) to reconsider the matter of disallowance due to late deposit of Employees Contribution u/s 36(1) (va) of the Income Tax Act in light of decision of Hon’ble Supreme Court in Checkmate Services.
Facts- The return of income was filed by the appellant on 30.10.2018. The same was processed u/s 143(1) of the Act on 08.01.2020 in the said order u/s 143(1) of the Act, DCIT-CPC disallowed a sum of ₹ 46,01,390/- due to late deposit of Employees Contribution u/s 36(1) (va) of the Act. The appellant then filed a rectification application u/s 154 of the Act on 17.02.2020 to rectify the mistake on the ground that the AO has wrongly disallowed the same. The AO-CPC, however, rejected the grounds taken by the appellant vide its order u/s 154 of the Act dated 08.06.2020. CIT(A) also dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that CIT(A) has not considered the decision of the Hon’ble Supreme Court in the case of Checkmate Services Pvt. Ltd. Vs. Commissioner of Income Tax-1: Civil Appeal No.2833 of 2016, while deciding the grounds of appeal raised by the appellant. It is therefore, pertinent on our part to remand the matter back to the file of Ld. CIT(A) to reconsider the case in the light of latest decision of the Hon’ble Supreme Court in Checkmate Services (supra) and decide it accordingly.
