Case Number: ITA 3000/DEL/2022
Appellant: Vivek Dutta, Faridabad
Respondent: DCIT, Circle-2(1), Faridabad
Assessment Year: 2018-19
Case Filed On: 2022-12-23
Order Type: Final Tribunal Order
Date of Order: 2023-08-29
Pronounced On: 2023-08-29
In the case of Vivek Dutta vs. DCIT, Circle-2(1), Faridabad, the appellant, Vivek Dutta, challenged the penalty levied under Section 271 (1) (c) of the Income-tax Act, 1961, for the assessment year 2018-19. The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘H’ on 29th August 2023, with the final order pronounced on the same day.
The appeal arose from the order passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi on 3rd November 2022. The appellant, represented by Shri S.B. Gupta, CA, contended that the addition in the intimation under Section 143(1) of the employees’ contribution to PF and ESI was based on incorrect dates reported in the tax audit report (Form 3CD).
During the proceedings, the counsel for the appellant argued that the due date for payment of employees’ contributions towards provident fund and ESI for September 2017 was 15th October 2017, which was a Sunday. The contributions were deposited on the next working day, 16th October 2017, and should therefore be considered timely. Additionally, a typographical error in the tax audit report incorrectly reported the payment dates, leading to unjustified additions.
The ITAT bench, comprising Shri Narendra Kumar Billaiya (Accountant Member) and Shri Kul Bharat (Judicial Member), noted the appellant’s reliance on the General Clauses Act, which allows for such extensions when the due date falls on a Sunday. Furthermore, for the assessment year 2019-20, the bench recognized that the typographical error in the tax audit report incorrectly recorded the payment date as 14th September 2019 instead of 14th September 2018.
The tribunal’s order stated: ‘The AO is directed to verify whether for AY 2018-19, the limitation for deposit of employees’ contribution of EPF & ESI was expiring on Sunday, and if so, allow the claim of the assessee. Similarly, for AY 2019-20, the AO should verify if the payment was made within time and delete the addition if confirmed.’
The appeals for both assessment years were allowed for statistical purposes, meaning the matters were sent back to the Assessing Officer (AO) for verification.
The ITAT’s decision underscores the importance of accurate reporting and the potential consequences of typographical errors in tax documents. It also highlights the application of the General Clauses Act in extending due dates when deadlines fall on holidays.
Order Pronounced: In the open court on 29th August 2023.
Bench: Shri Narendra Kumar Billaiya, Accountant Member and Shri Kul Bharat, Judicial Member
Copy forwarded to:
Date of Hearing: 29th August 2023
Date of Order: 29th August 2023
Vivek Dutta vs. DCIT, Circle-2(1), Penalty under Section 271 (1) (c) Appeal for AY 2018-19
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