Re: Disallowance of late deposit of PF / ESI etc u/s 36(1)(va)
Now a days CPC Centre Bengaluru is disallowing u/s 36(1)(va) late deposit of PF / ESI (employees share) but deposited before the due date of filing of return and claimed by the assessee u/s 43B. There are lots of judgments on this issue by Supreme Court in Vinay Cement Ltd. and Altom Extrusion Ltd. Delhi High Court also gave judgment in favor of assessee in AIMIL Ltd., Dhamendra Sharma, SPL Ltd. etc. Recently, DHC confirmed the disallowance in Bharat Hotel Ltd case and keeping in view the judgment the CIT (A) in Delhi and ITAT in Delhi are confirming the disallowance. Some High Courts have confirmed the addition and some decided in favor of the assessee.
Sir, Income Tax Act is a central govt. act. Do you think it is fair some High Courts are disallowing and some are allowing. It is against the principle of judicial discipline and comity of course.
There is no loss to the revenue if there is some delay in deposit as assessee pays interest on late deposit under PF / ESI Act.
Unnecessary litigation is increasing as CPC Centre has feeded disallowance in every case.
On the one hand, govt is encouraging that litigation should be reduced by filing application under Vivad Se Vishwas Scheme but here due to automatic disallowance by the CPC Centre the litigation is increasing. Please clarify the issue and the matter should be taken with the govt. There should be one law in the whole country not state wise decisions.
We agree with your understanding. We being a common law country every assessee would be subject to the decision of their jurisdictional High Court. Till the decision of the Supreme Court the Assessing office of respective State is bound to follow the judgement of J urisdictional High Court
With respect to the errors in the CPC order i.e. under section 143(1) of the Act. A redressal mechanism is laid down by fling a rectification application under section 154 of the Act or an appeal against the intimation.
As per Article 141 of the Constitution of India, the law declared by the supreme Court shall be binding on all courts with in the territory of India . As per the Article 227 of the constitution of India , every High Court shall have superintendence over all courts and Tribunals throughout the territories in relation to which it exercises jurisdiction . legislature cannot pass any law which is against basic structure of the Constitution of India .
The CPC is doing adjustments from asst year 2018-19 for above issues.In asst year 2019-20 in ITR 3 with accounts case they are doubling speculation income returned and the issue is continuing from NOV 2019.If assessee has only speculation income under business head the CPC is calculating that as non speculation and also the speculation offered.ALL RECTIFICATIONS AND GRIEVANCE PORTAL are summarily rejected.APPEALS ARE BEING FILED.