Case Number: ITA 1047/DEL/2021
Appellant: Ashok Handlooms Factory Pvt. Ltd., Meerut
Respondent: Assistant Commissioner of Income Tax, Circle-1, Meerut
Assessment Year: 2018-19
Result: 2018-19
Case Filed on: 2021-09-02
Order Type: Final Tribunal Order
Date of Order: 2021-11-26
Pronounced on: 2021-11-26
The case of Ashok Handlooms Factory Pvt. Ltd., Meerut versus Assistant Commissioner of Income Tax, Circle-1, Meerut centers around the disallowance of PF (Provident Fund) contribution under Section 36 by the Assessing Officer (AO) and upheld by the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2018-19. The appellant, Ashok Handlooms Factory Pvt. Ltd., challenged this disallowance and the manner in which the CIT(A) handled the appeal.
Ashok Handlooms Factory Pvt. Ltd. filed its return of income for the assessment year 2018-19, which was subjected to scrutiny by the Assessing Officer. The AO made a disallowance of Rs. 124,550/- towards Provident Fund contribution under Section 36, which was subsequently upheld by the CIT(A). The appellant contended that the CIT(A) disposed of the appeal without affording proper opportunity to present further written submissions due to issues with the Income Tax website.
The grounds raised by the appellant were as follows:
1. The disallowance of Rs. 124,550/- towards P.F. under Section 36 by the AO and sustained by the CIT(A) is wrong, illegal, unwarranted, and deserved to be deleted.
2. The CIT(A) disposed of the appeal without affording proper opportunity, as the Income Tax site was not working, preventing the assessee from filing further written submissions. The assessee had moved a grievance on 19-07-2021 regarding the non-working of the Income Tax site, but the CIT(A) proceeded to pass the order despite being aware of this issue.
3. The CIT(A) rejected the appeal without considering the latest order of ITAT Agra Bench, ITA No. 41 & 42/AGR/2021 for AY 2018-19 & 2019-2020, dated 14-06-2021, which held that NFAC is bound by the binding decision of the Jurisdictional Allahabad High Court.
The Tribunal reviewed the submissions and noted that the CIT(A) decided the appeal without affording proper opportunity to the appellant, citing technical issues with the Income Tax website. Both the appellant’s counsel and the Senior Departmental Representative (DR) for the Revenue agreed that the issue should be set aside to the CIT(A) for a denovo order after providing a reasonable opportunity to the appellant.
The Tribunal referenced several key decisions, including the latest order of the ITAT Agra Bench, which emphasized the binding nature of decisions from the Jurisdictional Allahabad High Court on NFAC.
The Tribunal allowed the appeal filed by Ashok Handlooms Factory Pvt. Ltd. for the assessment year 2018-19. The issue of the disallowance of PF contribution was set aside to the CIT(A) for a denovo order after providing a reasonable opportunity to the appellant.
In conclusion, the ITAT, Delhi Bench, provided a fair judgment by allowing the appeal of Ashok Handlooms Factory Pvt. Ltd. The case was remanded to the CIT(A) for a fresh order after considering the appellant’s submissions and ensuring proper procedural fairness for the assessment year 2018-19.
Pronounced in the open court on 26th November 2021.
Signed:
(Suchitra Kamble)
Judicial Member
Signed:
(Anadee Nath Misshra)
Accountant Member
Dated: 26th November 2021
Copy forwarded to:
Asstt. Registrar, ITAT, New Delhi
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