DCIT Corporate Circle 2(1), CHENNAI V. Eastern Chrome Tanning Corporation Pvt Ltd., CHENNAI

ITA 1022/CHNY/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 8003 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 26-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . , .. ', BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AND SHRI DUVVURU R.L.REDDY, JUDICIAL MEMBER ./ ITA NO.1022/CHNY/2018 $% % /ASSESSMENT YEAR: 2013-14 THE DY. COMMISSIONER- OF INCOME TAX, CORPORATE CIRCLE-2(1), ROOM NO.511, 5 TH FLOOR, WANAPARTHY BLOCK, 121, M.G.RAOD, CHENNAI-34. VS. M/S.EASTERN CHROME TANNING- CORPORATION PVT. LTD., MASHKUR, 3 RD FLOOR, NO.1, KRISHNAMMA ROAD, CHENNAI-34. [PAN: AAAC E 9098 H ] ( ( /APPELLANT) ( )*( /RESPONDENT) DEPARTMENT BY : MR. R.CLEMENT RAMESH KUMAR, ADDL.CIT ASSESSEE BY : NONE 3 /DATE OF HEARING : 27.08.2018 3 /DATE OF PRONOUNCEMENT : 24.09.2018 / O R D E R PER DUVVURU R.L.REDDY, JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-6, CHENNAI, IN ITA NO.5/CIT(A)- 6/2016-17 DATED 29.12.2017 FOR THE AY 2013-14. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF LEATHER SHOE UPPER AND FILED ITS RETURN OF ITA NO.1022/CHNY/2018 :- 2 -: INCOME FOR THE AY 2013-14 ON 28.09.2013 ADMITTING A TOTAL INCOME OF RS.48,89,020/-. THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE U/S.143(2) DATED 02.09.2014 WAS ISSUED AND DULY SERVED ON ASSE SSEE ON 22.09.2014. AFTER CONSIDERING THE DETAILS FURNISHED BY THE ASSE SSEE AGAINST STATUTORY NOTICES AS WELL AS THE SUBMISSIONS OF THE ASSESSEE, THE ASSESSMENT U/S.143(3) OF THE ACT WAS COMPLETED BY DETERMINING THE TOTAL INCOME OF RS.1,32,48,810/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO HAS NOTICED THAT THE CONTRIBUTION TO PF & ESI COLLE CTED FROM THE EMPLOYEES HAD BEEN REMITTED BELATEDLY. ACCORDINGLY, THE AO T REATED THE DELAYED PAYMENTS REPRESENTING EMPLOYEES CONTRIBUTION TOWARD S PF AND ESI OF RS.83,59,786/- AS INCOME OF THE ASSESSEE AND BROUGH T TO TAX U/S.2(24)(X) R.W.S.36(I)(A) OF THE ACT. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFOR E THE LD.CIT(A) AND CHALLENGED THE ABOVE SAID DISALLOWANCE. 4. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSE E AND BY RELYING UPON THE DECISION OF THE HONBLE MADRAS HIGH COURT IN THE CASE OF CIT VS. INDUSTRIAL SECURITY & INTELLIGENCE INDIA PVT. LTD. IN TCA NO.585 & 586 OF 2016 & MP NO.1 OF 2015 DATED 24.07.2015, LD.CIT(A) DELETED THE ADDITION AND ALLOWED THE APPEAL FILED BY THE ASSESSEE. 5. AGGRIEVED THE REVENUE IS IN APPEAL BEFORE THE TR IBUNAL AND CHALLENGED THE ISSUE WITH REGARD TO BELATED REMITTA NCES OF EMPLOYEES ITA NO.1022/CHNY/2018 :- 3 -: CONTRIBUTION TOWARDS PF. THE LD.DR HAS SUBMITTED T HAT THE EMPLOYEES CONTRIBUTION OF ESI & PF ARE GOVERNED BY THE SEC.36 (1)(VA) AND NOT UNDER 43B OF THE ACT. 6. IN SPITE OF SERVICE OF NOTICE (ACK. ON RECORD), NEITHER ASSESSEE NOR HIS REPRESENTATIVE APPEARED DURING THE COURSE OF HE ARING OF THE APPEAL. HENCE, WE PROCEED TO DECIDE THE ISSUE ON MERITS AFT ER CONSIDERING THE SUBMISSIONS OF THE LD.DR. 7. WE HAVE HEARD THE LD.DR, PERUSED THE MATERIALS P LACED ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. I N THE PRESENT CASE ON THE HAND, THE ASSESSEE FAILED TO REMIT THE PF & ESI AMOUNTING TO RS.83,59,786/- WITHIN THE DUE DATE UNDER PF ACT BUT THE ASSESSEE HAD REMITTED THE SAME WITHIN THE DUE DATE OF FILING OF THE RETURN OF INCOME. THERE IS NO DISPUTE ABOUT THE ABOVE SAID CONTENTION . WE HAVE ALSO PERUSED THE RATIO LAID DOWN IN THE CASE OF CIT VS. INDUSTRIAL SECURITY & INTELLIGENCE INDIA PVT. LTD. IN TCA NO.585 & 586 OF 2016 & MP NO.1 OF 2015 DATED 24.07.2015, WHEREIN, IT WAS HELD THAT TH ERE COULD BE NO DEEMED ADDITION U/S.36(1)(VA) R.W.S.2(24)(X) OF THE ACT IF THE IMPUGNED AMOUNT PAID BEFORE THE DUE DATE OF THE FILING OF TH E RETURN. THIS TRIBUNAL HAS ALSO FOLLOWED THE ABOVE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN DECIDING THE SIMILAR ISSUE IN VARIOUS CASE S. IN VIEW OF THE ABOVE WE SUSTAIN THE ORDER PASSED BY THE LD.CIT(A) IN DEL ETING THE ADDITION AND THUS THE GROUND RAISED BY THE REVENUE IS DISMISSED. ITA NO.1022/CHNY/2018 :- 4 -: 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED ON THE 24 TH DAY OF SEPTEMBER, 2018, IN CHENNAI. SD/- SD/- ( . ) ( ABRAHAM P.GEORGE ) /ACCOUNTANT MEMBER ( . . ' ) ( DUVVURU R.L. REDDY ) $ /JUDICIAL MEMBER /CHENNAI, 8 /DATED: SEPTEMBER 24, 2018. TLN 3 )$9: ;: /COPY TO: 1. ( /APPELLANT 4. < /CIT 2. )*( /RESPONDENT 5. : )$$ /DR 3. < ( ) /CIT(A) 6. % /GF