DECO MICA LIMITED V. DEPUTY COMMISSIONER OF INCOME TAX

TAXAP/1187/2018

AI Insights

The case involves Deco Mica Limited, which appealed against the decision of the Income Tax Appellate Tribunal, Ahmedabad, concerning the deductibility of Rs. 8,13,235, the employees' contribution towards Provident Fund and ESI for the Assessment Year 2013-14. The Tribunal had disallowed the deduction because the contributions were not deposited within the statutory deadline. The High Court of Gujarat, referencing a previous judgment (CIT vs. GSRTC), upheld the Tribunal's decision. The appellant's counsel acknowledged the precedent but requested a mechanism to benefit from a potential Supreme Court reversal without incurring further costs, given the small amount in dispute.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 771275 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 01-10-2018
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income-tax vs. Gujarat State Road Transport Corporation Limited
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Assessee Lawyers: TUSHAR HEMANI; VAIBHAVI PARIKH
• Keywords: Deductibility; Employees Contribution; ESI; Income Tax; Provident fund
• Section: 366 ITR 170

Judgement Text

"C/TAXAP/1187/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL No. 1187 of 2018 ============================================================= DECO MICA LIMITED Versus DEPUTY COMMISSIONER OF INCOME TAX ============================================================= Appearance : Mr TUSHAR HEMANI with Ms. VAIBHAVI K PARIKH, Advocate for PETITIONER for the RESPONDENT(s) No. 1 ============================================================= CORAM: HONOURABLE Mr. JUSTICE AKIL KURESHI and HONOURABLE Mr. JUSTICE B.N. KARIA 1st October 2018 ORAL ORDER (PER : HONOURABLE Mr. JUSTICE AKIL KURESHI) This Appeal is filed by the assessee to challenge the judgment of the Income Tax Appellate Tribunal, Ahmedabad {“Tribunal” for short} dated 22nd March 2018. The issue pertains to Assessment Year 2013-14 and the sole question raised by the assessee in this appeal concerns deductibility of a sum of Rs. 8,13,235/= which was the employees’ contribution towards Provident Fund, ESI, etc. It appears that the assessee did deposit such amount of contribution towards PF & ESIC accounts, however, missed the deadline prescribed in the statutes for such purpose. On account of this, the Revenue did Page 1 of 3 C/TAXAP/1187/2018 ORDER not permit deduction of such sum from the income of the assessee. Such disallowance thereupon became the subject matter of appeal before the Tribunal. The Tribunal dismissed the ground, relying upon the judgment of this Court in the case of Commissioner of Income-tax vs. Gujarat State Road Transport Corporation Limited, reported in 366 ITR 170 [Gujarat]. Counsel for the appellant did not dispute that the issue on hands is squarely covered by this Court in the case of CIT v. GSRTC [Supra]. He, however, submitted that the appeal is pending against the judgment of the High Court before the Supreme Court and SLP has been granted. The amount involved is not very large and it would be extremely expensive for the assessee to carry this in appeal before the Supreme Court. He, therefore, suggested that the benefit of this judgment of the Supreme Court may be made available to the assessee; as and when rendered and in case, the judgment of the High Court is reversed. Two clear ways are possible to enable the appellant- assessee to get benefit of the judgment of the Supreme Court, in case the High Court judgment is reversed. One is to dismiss this Page 2 of 3 C/TAXAP/1187/2018 ORDER appeal and allow the assessee to approach the Supreme Court; like some other assesses would have. The other way is to make some arrangement under which without filing the appeal, the assessee would also be able to claim the benefit of the judgment. Looking to the smallness of the disputed amount, we adopt the latter option by providing as under : This appeal at this stage is dismissed. However, if the Supreme Court reverses the judgment in the case of CIT vs. GSRTC [Supra], it would be open for the appellant to revive this appeal by filing an application for such purpose within three months from the date of the judgment. Appeal stands disposed of accordingly. [Akil Kureshi, J.] [B.N Karia, J.] Prakash Page 3 of 3 "