Income Tax Appellate Tribunal (ITAT), Mumbai deleted the disallowance made by Assessing Officer (AO) on alleged delay in payment towards employee’s contribution to Provident Fund under Section 36(1) (va).
The appeal has been filed by the assessee challenging the order, passed under section 250 of the Income Tax Act, 1961 by the learned Commissioner of Income Tax (CIT), for the assessment year 2017 – 18. The issue arising in present appeal is pertaining to disallowance of Rs.32,140, on account of alleged delay in payment towards employee’s contribution to Provident Fund (PF) under section 36(1) (va) r/w section 2(24) of the Act, by the Centralized Processing Centre, Bengaluru, while processing the income tax return under section 143(1) of the Act, which was upheld by the CIT.
The Bench consisting of Om Prakash Kant, Accountant Member and Sandeep Singh Karhail, Judicial Member relied on the judgment in Kalpesh Synthetics Pvt. Ltd. v. DCIT, wherein while deleting the disallowance u/s 36(1)(va) made vide intimation issued under section 143(1) of the Act, held that “Coming to the mechanism of application of Section 143(1), we find that the first proviso to Section 143 (1) mandates that “no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode” and, under the second proviso to Section 143(1), “the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made”
The bench held that “Similar issue is arising in present appeal. Accordingly, respectfully following the aforesaid decision, we delete the disallowance made by the Assessing Officer in terms of section 36(1)(va) of the Act.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
