Swiss Pharma Pvt. Ltd. Vs ITO (ITAT Ahmedabad)
The assessee filed its return of income for Assessment Year 2021-22 on 04.03.2022, declaring a total loss of ₹10,97,374. The return was processed under Section 143(1), and the total income was determined at ₹4,01,300 after an addition of ₹14,98,673 due to disallowance of delayed payment of employees’ contributions to Provident Fund (PF) and Employees’ State Insurance (ESI) under Section 36(1)(va) of the Income Tax Act. An income tax refund was granted.
The assessee challenged the disallowance of employees’ PF and ESI contributions and also contended that the refund granted was lower than the refund claimed in the return of income. The Commissioner of Income Tax (Appeals) dismissed the appeal.
Before the Tribunal, the assessee reiterated its objections regarding the PF/ESI disallowance and the refund amount. The Tribunal observed that the issue relating to delayed payment of employees’ contributions to PF and ESI stood concluded against the assessee by the decision of the Supreme Court in Checkmate Service Pvt. Ltd. vs. CIT. It further held that the divergent views referred to by the assessee would not apply in the present case. Accordingly, the ground challenging the disallowance of ₹14,98,673 was dismissed.
Regarding the refund claim, the Tribunal held that the matter required verification. It directed the Assessing Officer to verify the assessee’s claim and grant the refund if found admissible. This ground was partly allowed for statistical purposes.
