Orissa Pisciculture Development Corporation Limited, Bhubaneswar V. DCIT, Corporate Circle-1(2), Bhubaneswar

CO 25/CTK/2018

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 4082 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 1 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 13-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 13-08-2018
• Assessment Year: 2014-2015
• Appeal Filed On: 12-07-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: P C SETHI
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 35 /CTK/201 8 ASSESSMENT YEAR : 201 4 - 2015 DCIT CORPORATE CIRCLE - 1(2), BHUBANESWAR. VS. ORISSA PISCICULTURE DEVELOPMENT COPRN., LTD., D.NAYAPALLI, BHUBANESWAR. PAN/GIR NO. AAACO 6404 D (APPELLANT ) .. ( RESPONDENT ) C.O.NO.25/CTK/2018 (IN ITA NO.35/CTK/2018) ASSESSMENT YEAR : 2014 - 2015 ORISSA PISCICULTURE DEVELOPMENT COPRN., LTD., D.NAYAPALLI, BHUBANESWAR VS. DCIT CORPORATE CIRCLE - 1(2), BHUBANESWAR. PAN/GIR NO. (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.C.SETHI, AR REVENUE BY : SHRI SU BH ENDU DATTA , DR DATE OF HEARING : 13 /0 8 / 2018 DATE OF PRONOUNCEMENT : 13 /0 8 / 2018 O R D E R PER N.S.SAINI, AM TH E APPEAL FILED BY THE REVENUE AND CROSS OBJECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE CIT(A) - 1, BHUBANESWAR DATED 31.10.2017 FOR THE ASSESSMENT YEAR 2014 - 15. 2. THE REVENUE IN ITS APPEAL IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN DELETING THE ADDITION OF RS.64,80,834/ - TOWARDS EMPLOYEES CONTRIBUTION 2 ITA NO.35/CTK/2018 C.O.NO.25/CTK/2018 ASSESSMENT YEAR : 2014 - 2015 TO PF AND RS.5,77,817/ - TOWARDS ESI AGGREGATING TO RS.70,58,651/ - MADE BY TH E ASSESSING OFFICER TOWARDS DISALLOWANCE U/S.2(24)(X) R.W.S. 36(1)(VA) OF THE I.T.ACT, 1961. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS NOT DEPOSITED THE EMPLOYEES CONTRIBUTION TO PF AND ESI IN THEIR RESPECTIVE FUND WITHIN THE STIPULATED DATE AS PRESCRIBED UNDER THE ACT. THEREFORE, HE DISALLOWED RS.64,80,834/ - TOWARDS PF AND RS.5,77,817/ - TOWARDS ESI NOT DEPOSITED WITHIN THE DUE DATE. 4. ON APPEAL, THE CIT(A) DELET ED THE ADDITION FOLLOWING THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2011 - 12 IN ITA NO.126/CTK/2017 ORDER DATED 4.8.2017. 5. BEFORE US, LD A.R. SUPPORTED THE ORDER OF THE CIT(A). 6 . LD D.R. SUPPORTED THE ORDER OF THE ASSESS ING OFFICER. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER HAS DISALLOWED RS.64,80,834/ - TOWARDS EMPLOYEES CONTRIBUTION TO PF AND RS.5,77,817/ - TOWARDS ESI AGGREGATING TO RS.70,58,651/ - U/S.2(24)(X) R.W.S. 36(1)(VA) OF THE I.T.ACT, 1961 ON THE GROUND THAT THE SAID AMOUNT WAS NOT DEPOSITED WITHIN THE DUE DATE PRESCRIBED UNDER THE RESPECTIVE ACT. 3 ITA NO.35/CTK/2018 C.O.NO.25/CTK/2018 ASSESSMENT YEAR : 2014 - 2015 8 . ON APPEAL, THE CIT(A) DELETED THE ADDITION FOLL OWING THE DECISION OF THIS BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 201 - 2012. 9. ON PERUSAL OF ASSESSMENT ORDER AT PAG ES 2 & 3 , WE FIND THAT THE ASSESSEE HAS DEPOSITED THE EMPLOYEES CONTRIBUTION TO PF AND ESI BEFORE FILING OF T HE RETURN OF INCOME U/S.139(1) OF THE ACT. THE CIT(A) HAS DELETED THE SIMILAR DISALLOWANCE FOLLOWING THE DECISION OF THIS TRIBUNAL IN ASSESSEES OWN CASE. WE ALSO FIND THAT RECENTLY THE HONBLE SUPREME COURT IN THE CASE OF PR. CIT VS RAJASTHAN BEVERAGE CORPORATION LTD., (2017) 84 TAXMAN. COM 185 (SC), ON SIMILAR ISSUE HAS HELD AS UNDER: SECTION 43B, READ WITH SECTION 36(1)(VA), OF THE INCOME TAX ACT, 1961 - BUSINESS DISALLOWANCE - CERTAIN DEDUCTION TO BE ALLOWED ONLY ON `ACTUAL PAYMENT (PF & ESI CONSTRUCTIO N) - HIGH COURT BY THE IMPUGNED ORDER HELD THAT AMOUNT CLAIMED ON PAYMENT OF PF AND ESI HAVING BEEN DEPOSITED ON OR BEFORE DUE DATE OF FILING OF RETURNS, SAME COULD NOT BE DISALLOWED UNDER SECTION 43B OR UNDER SECTION 36(1)(VA) - WHETHER SLP AGAINST SAID IMP UGNED ORDER WAS TO BE DISMISSED - HELD YES (PARA 2) IN FAVOUR OF ASSESSEE. 10 . RESPECTFULLY FOLLOWING THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF RAJASTHAN BEVERAGE CORPORATION LTD., (SUPRA), WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) IN DELETING THE ADDITION OF RS.64,80,834/ - TOWARDS EMPLOYEES CONTRIBUTION TO PF AND RS.5,77,817/ - TOWARDS ESI AGGREGATING TO RS.70,58,651/ - MADE U/S.2(24)(X) R.W.S. 36(1)(VA) OF THE I.T.ACT, 1961 AS AMOUNT WAS DEPOSITED AFTER THE DUE 4 ITA NO.35/CTK/2018 C.O.NO.25/CTK/2018 ASSESSMENT YEAR : 2014 - 2015 DATE BUT BEFORE THE TIME ALLOWED FOR FILING THE RETURN U/S.139(1) OF THE ACT AND DISMISS THE GROUND OF APPEAL OF THE REVENUE. 11. AS WE HAVE DISMISSED THE APPEAL OF THE REVENUE, THE CROSS OBJECTION FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS AND HENCE, DISMISSED. 12. IN THE RESULT, APPEAL FILED BY THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON 13 /0 8 /2018. S D/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 13 /0 8 /2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : DCIT CORPORATE CIRCLE - 1(2), BHUBANESWAR 2. THE RESPONDENT. ORISSA PISCICULTURE DEVELOPMENT COPRN., LTD., D.NAYAPALLI, BHUBANESWAR 3. THE CIT(A) - 1, BHUBANESWAR 4. PR.CIT - 1, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//