Case Law Details
P A Zaveri Vs DCIT CPC-Bangalore (ITAT Mumbai)
ITAT Mumbai held that the disclosure made by the tax auditor in audit report in Form 3CD about the ‘Details of contributions received from employees for various funds as referred to in section 36(1)(va)’ would now become indicative of a disallowance, hence provisions of section 143(1)(a)(iv) of the Act would get attracted.
Facts- The solitary issue raised by the Assessee in all the appeals is whether at the time of processing of return of income under Section 143(1) of the Act the Revenue was justified in rejecting the claim of the Assessee for deduction in respect of Employees’ Contribution to Provident Fund and Employee State Insurance deposited after the expiry of due date specified in the statement but before the filing of return of income within the time prescribed under Section 139(1) of the Act keeping in view the provisions of Section 143(1)(a)(iv) read with Section 2(24)(x), Section 36(1)(va) and Section 43B of the Act.
Conclusion- Held that the disclosure made by the tax auditor in audit report in Form 3CD about the ‘Details of contributions received from employees for various funds as referred to in section 36(1)(va)’ would now become indicative of a disallowance as the mere fact that Employees’ Contribution to ESI/PF has been deposited after the expiry of due date as specified in the applicable statute would trigger disallowance under Section 36(1)(va) read with Section 2(24(x) of the Act for the reason that subsequent to judgment of the Hon’ble Supreme Court in the case of Checkmate Services Private Ltd. (supra), there remains no scope for any other interpretation. Since fact reported by the tax audit report would now be considered indicative of disallowance, the provisions of Section 143(1)(a)(iv) of the Act would get attracted.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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