Roverco Apparel Co. Private Ltd., CHENNAI V. ACIT, Corporate Circle05(2), CHENNAI

CO 135/CHNY/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4701 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 21-03-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 13-12-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N VIJAY KUMAR
• Keywords: Set aside
• Section: 14A; 139(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , ! ' , $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.183/CHNY/2018 ( )( / ASSESSMENT YEAR : 2014-15 & C.O. NO.135/CHNY/2018 (IN I.T.A. NO.183/CHNY/2018) ( )( / ASSESSMENT YEAR : 2014-15 THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(2), CHENNAI - 600 034. V. M/S ROVERCO APPAREL COMPANY PVT. LTD., NO.37, TTK ROAD, ALWARPET, CHENNAI - 600 018. PAN : AACCR 4890 A (+,/ APPELLANT) (RESPONDENT & CROSS-OBJECTOR) +, - . / APPELLANT BY : SHRI AR.V. SREENIVASAN, JCIT /0+, - . / RESPONDENT BY : SHRI N. VIJAY KUMAR, CA 1 - 2$ / DATE OF HEARING : 21.02.2019 34) - 2$ / DATE OF PRONOUNCEMENT : 21.03.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -3, CHENNA I, DATED 27.10.2017 AND PERTAINS TO ASSESSMENT YEAR 2014-15. THE ASSESSEE HAS FILED A CROSS-OBJECTION IN SUPPORT OF THE ORDER OF THE 2 I.T.A. NO.183/CHNY/18 C.O. NO.135/CHNY/18 CIT(APPEALS). WE HEARD BOTH THE APPEAL AND THE CRO SS-OBJECTION TOGETHER AND DISPOSING OF THE SAME BY THIS COMMON O RDER. 2. THE FIRST ISSUE ARISES FOR CONSIDERATION IS DISA LLOWANCE OF EMPLOYEES CONTRIBUTION TOWARDS PF. 3. WE HEARD SHRI AR.V. SREENIVASAN, THE LD. DEPARTM ENTAL REPRESENTATIVE AND SHRI N. VIJAY KUMAR, THE LD. REP RESENTATIVE FOR THE ASSESSEE. THE ASSESSING OFFICER FOUND THAT THE EMPLOYEES CONTRIBUTION WAS REMITTED TO THE GOVERNMENT ACCOUNT BEYOND THE DUE DATE MENTIONED IN THE PROVIDENT FUND ACT. THER EFORE, THE ASSESSING OFFICER BY PLACING RELIANCE ON THE JUDGME NT OF GUJARAT HIGH COURT IN CIT V. GUJARAT STATE ROAD TRANSPORT C ORPORATION (2014) 41 TAXMANN.COM 100 DISALLOWED THE CLAIM OF T HE ASSESSEE. ON APPEAL BY THE ASSESSEE BEFORE THE CIT(APPEALS), THE CLAIM OF THE ASSESSEE WAS ALLOWED ON THE BASIS OF JUDGMENT O F KARNATAKA HIGH COURT IN ESSAE TERAOKA (P) LTD. V. DCIT (2014) 366 ITR 408. IT IS NOT IN DISPUTE THAT THE EMPLOYEES CONTRIBUTI ON WAS REMITTED TO THE GOVERNMENT ACCOUNT BEFORE THE DUE DATE FOR FILI NG OF RETURN OF INCOME UNDER SECTION 139(1) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). THE ONLY OBJECTION OF THE LD. D.R. IS THAT IT WAS FILED BEYOND THE DUE DATE PRESCRIBED IN THE PROVIDENT FUN D ACT. THE 3 I.T.A. NO.183/CHNY/18 C.O. NO.135/CHNY/18 MADRAS HIGH COURT IN THE CASE OF CIT V. INDUSTRIAL SECURITY AND INTELLIGENCE INDIA (P.) LTD. IN TC(A). NO.585 & 586 OF 2015 FOUND THAT IF THE PAYMENT WAS MADE WITHIN THE DUE DATE FO R FILING THE RETURN OF INCOME UNDER SECTION 139(1) OF THE ACT, IT HAS T O BE ALLOWED. IN VIEW OF THE JUDGMENT OF MADRAS HIGH COURT, THIS TRI BUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 4. THE NEXT ISSUE ARISES FOR CONSIDERATION IS DISAL LOWANCE MADE BY THE ASSESSING OFFICER UNDER SECTION 14A OF THE A CT. 5. WE HEARD SHRI AR.V. SREENIVASAN, THE LD. D.R. AN D SHRI N. VIJAY KUMAR, THE LD. REPRESENTATIVE FOR THE ASSESSE E. ADMITTEDLY, THE ASSESSEE CLAIMS EXEMPTED INCOME. THE MADRAS HI GH COURT IN THE CASE OF REDINGTON (INDIA) LTD. V. ADDL. CIT (20 17) 77 TAXMANN.COM 257 FOUND THAT WHEN THERE WAS NO EXEMPT ED INCOME, THERE CANNOT BE ANY DISALLOWANCE. IN THIS CASE, TH E ASSESSEE ADMITTEDLY EARNED THE EXEMPTED INCOME. THEREFORE, THE DISALLOWANCE HAS TO BE RESTRICTED ONLY TO THE EXTEN T OF EXEMPTED INCOME EARNED BY THE ASSESSEE. SINCE THE DETAILS W ERE NOT AVAILABLE BEFORE THIS TRIBUNAL WITH REGARD TO EXEMP TED INCOME, THE MATTER NEEDS TO BE RE-EXAMINED BY THE ASSESSING OFF ICER. 4 I.T.A. NO.183/CHNY/18 C.O. NO.135/CHNY/18 ACCORDINGLY, ORDERS OF BOTH THE AUTHORITIES BELOW A RE SET ASIDE AND THE ISSUE OF DISALLOWANCE MADE UNDER SECTION 14A OF THE ACT IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE THE MATTER AND FIND OUT TH E EXEMPTED INCOME EARNED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW IN THE LIGHT OF THE J UDGMENT OF MADRAS HIGH COURT IN REDINGTON (INDIA) LTD. (SUPRA). 6. THE CROSS-OBJECTION FILED BY THE ASSESSEE IS ONL Y TO SUPPORT THE ORDER OF THE CIT(APPEALS). IN VIEW OF THE ABOV E, THE CROSS- OBJECTION BECOMES INFRUCTUOUS. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S PARTLY ALLOWED FOR STATISTICAL PURPOSES. HOWEVER, THE CRO SS-OBJECTION IS DISMISSED AS INFRUCTUOUS. ORDER PRONOUNCED IN THE COURT ON 21 ST MARCH, 2019 AT CHENNAI. SD/- SD/- ( ! ' ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 21 ST MARCH, 2019. 5 I.T.A. NO.183/CHNY/18 C.O. NO.135/CHNY/18 KRI. - /278 98)2 /COPY TO: 1. +, /APPELLANT 2. /0+, /RESPONDENT 3. 1 :2 () /CIT(A)-3, CHENNAI 4. PRINCIPAL CIT-5, CHENNAI 5. 8; /2 /DR 6. <( = /GF.