AMJ Land Holdings Limited Vs ACIT (ITAT Pune)
Summary: ITAT Pune allowed the appeal of AMJ Land Holdings Limited for AY 2021-22 and deleted disallowances aggregating to Rs.2,28,589/- relating to employees’ contributions to provident fund and superannuation fund. The assessee, engaged in real estate development, generation of wind power and investment of surplus funds, had declared normal total income of Rs.5,61,21,130/- and book profit of Rs.6,74,73,924/- under section 115JB. CPC disallowed Rs.64,469/- towards employees’ PF contribution and Rs.1,64,120/- towards employees’ superannuation contribution, and the assessee’s rectification application was rejected.
CIT(A)/NFAC sustained the action on the ground that a controversial issue could not constitute a mistake apparent from record for purposes of section 154. On the first issue, the assessee explained that PF amounts of Rs.15,581/- and Rs.48,888/-, due on 15.05.2020, were paid on 28.05.2020 and 06.06.2020 respectively during the Covid-19 lockdown. It relied on Diamour Jewels Pvt. Ltd. vs. CPC and Ethos Limited vs. DCIT. The Tribunal noted that Diamour Jewels had considered the Supreme Court ruling in Checkmate Services (P) Ltd. vs. CIT and nevertheless granted relief on the peculiar Covid-period facts because the EPF Organisation itself had waived penal damages for contribution delays during lockdown.
Finding the facts identical, ITAT Pune followed Diamour Jewels and deleted the Rs.64,469/- disallowance, while recognising the fact-specific nature of that relief. On the second issue, the Tribunal found it admitted that Rs.1,64,120/- of employees’ contribution to the superannuation fund had actually been deposited before the statutory due date. It therefore held that CPC was not justified in making that addition and directed its deletion. Both grounds were allowed and consequently the assessee’s appeal was allowed.
