ACIT Vs Global Waste Management Cell Pvt. Ltd. (ITAT Mumbai)
In this case, the Revenue filed Miscellaneous Applications before the Mumbai Bench of the Income Tax Appellate Tribunal Mumbai seeking recall or rectification of the Tribunal’s earlier order dated 31 May 2022 passed for assessment years 2017-18 to 2019-20. In the original order, the Tribunal had allowed the assessee’s claim for deduction of employees’ contribution to Provident Fund (PF) and Employees’ State Insurance (ESI), even though the payments were made beyond the due dates prescribed under the respective welfare statutes, as long as such payments were deposited on or before the due date for filing the return of income. The Tribunal had followed the binding judgment of the jurisdictional Bombay High Court in CIT v. Ghatge Patil Transport Ltd., which held that such delayed payments are allowable if deposited before the return filing due date.
The Tribunal had also held that adjustments under Section 143(1) could not be made merely on the basis of disclosures in Form 3CD, since the form contains information and not a determination of disallowance. It observed that the Central Processing Centre could not invoke prima facie adjustments where the issue was already settled in favour of the assessee by binding judicial precedent. Accordingly, the Tribunal had directed deletion of disallowances made on account of delayed PF and ESI contributions.
