Revival of ITAT order via miscellaneous petition -
disallowance made for delayed remittance of Employees PF - delay by one day
with extended time as per law
Facts:
Revenue made a miscellaneous petition against the assessee
calling for disallowance for delayed remittance of employee's PF post facto
Apex court verdict of Checkmate Services Pvt. Ltd. v. CIT, (2022) 448
ITR 518 (SC) : 2022 TaxPub(DT) 6647 (SC) based on which the ITAT
recalled its order dated 15-07-2022 for assessment year 2018-19 for rehearing.
Assessee filed their cross objection appeal.
Plea
of the assessee was that there was delay only in one month May 2017 that too by
one day (remittance done on 16-06-2017) in remitting the employee's PF
contribution. It was also placed before the ITAT that the PF authorities had
extended the due date by one day viz to 16-06-2017 for that monthly payment of
PF. Accordingly they had paid before the due date as per PF law and no
disallowance was warranted in their case.
Held
in favour of the assessee that no disallowance due to delayed payment of PF was
called for.
Ed. Note:
A number of cases on this are reopened due to the Apex court verdict of Checkmate
Services Pvt. Ltd. v. CIT, (2022) 448 ITR 518 (SC) : 2022 TaxPub(DT) 6647
(SC) . Instead of simply reopening the cases a show cause or a
checking if done will avoid unnecessary litigation. CBDT can come out with a
circular to this effect giving a moratorium before which cases will not be
reopened due to this decision. Will provide succour to many assessees.
Case: Dy. CIT v. Harman Finochem Ltd. 2023 TaxPub(DT) 5562 (Mum-Trib)