Finar Limited (Formerly known as Finar Chemicals Ltd.), Ahmedabad V. The Dy. Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad

ITA 1082/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6058 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 28-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Assessee Lawyers: DEEP SHAH
• Keywords: Question of law
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO. 1082/AHD/2016 (AS SESSMENT YEAR: 2012-13) FINAR LIMITED (FORMERLY KNOWN AS FINAR CHEMICALS LTD.) 208, SHAIL COMPLEX, NEAR SHILP BUILDING, OFF. C. G. ROAD, AHMEDABAD - 380006 APPELLANT VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(1), AHMEDABAD RESPONDENT PAN: AAACF3217D /BY ASSESSEE : SHRI DEEP SHAH, A.R. /BY REVENUE : SHRI V. K. SINGH, SR. D.R. /DATE OF HEARING : 15.02.2018 /DATE OF PRONOUNCEMENT : 21.02.2018 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012-13 ARISES AGAINST THE CIT(A)-2, AHMEDABADS ORDER DATED 16.03.2016, IN CA SE NO. CIT(A)-2/408/DCIT, CIR-2(1)(1)/2014-15, IN PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. ITA NO. 1082/AHD/16 [FINAR LTD. VS. DCIT ] A.Y. 2012-13 - 2 - 2. THE ASSESSEES SOLE GRIEVANCE PLEADED IN THE INS TANT APPEAL CHALLENGES CORRECTNESS OF THE CIT(A)S ORDER UPHOLDING ASSESSI NG OFFICERS ACTION DISALLOWING EMPLOYEES CONTRIBUTION TO PROVIDENT FUND OF RS.9,4 5,286/- IN ASSESSMENT ORDER DATED 02.02.2015. LOWER APPELLATE FINDINGS UNDER C HALLENGE READ AS UNDER: 2.3 DECISION: I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CASE, THE ASSESSMENT ORDER AND THE WRITTEN SUBMISSION OF THE APPELLANT. THE AO HAS MADE THE DISALLOWANCE ON ACCOUNT OF LATE PAYMENT OF EMPLOYEES CONTRIBUTION T O PF OF RS. 9,45,286/-. THE ASSESSING OFFICER IN THE ORDER HAS MENTIONED THAT A S PER THE PROVISIONS OF CLAUSE (VA) OF SUB SECTION (1) OF 36 OF THE ACT, THE ASSES SEE IS ENTITLED TO DEDUCTION IN RESPECT OF THE SUM REFERRED TO IN SUB CLAUSE (X) OF CLAUSE (24) OF SECTION 2 OF THE ACT IF SUCH SUM IS CREDITED BY THE ASSESSEE TO THE EMPL OYEES ACCOUNT IN THE RELEVANT FUND ON OR BEFORE THE DUE DATE OF RESPECTIVE ACTS. THE AO HAS FURTHER RELIED ON THE RECENT JUDGMENT OF HON'BLE HIGH COURT OF GUJARAT IN THE CASE OF GUJARAT STATE ROAD TRANSPORT CORPORATION [2014] 41 TAXMANN.COM 10 0 (GUJARAT). 2.4. THE APPELLANT ON THE OTHER HAND HAS STATED DUR ING THE COURSE OF ASSESSMENT PROCEEDINGS AS WELL AS AT THE APPELLATE STAGE THAT THE CONTRIBUTION COLLECTED FROM EMPLOYEES TOWARDS EMPLOYEE'S CONTRIBUTION TO PF WAS DEPOSITED IN THE FUND AFTER THE DUE DATE MENTIONED IN THE RESPECTIVE ACT. HOWEV ER, THE APPELLANT HAS STATED THAT THE SAID AMOUNTS OF THE EMPLOYEES CONTRIBUTION TO PF HAS BEEN DULY DEPOSITED BEFORE DUE DATE OF FILING OF FILING OF RETURN OF IN COME MENTIONED IN SECTION 139(1) OF THE I. T. ACT, 1961. 2.5. IT IS WORTH HERE TO MENTION THAT THE DISALLOWA NCE WAS MADE FOR THE REASON THAT EMPLOYEES' CONTRIBUTION TO PF WAS NOT PAID WITHIN T HE DUE DATES SPECIFIED UNDER THE P.P. ACT. HENCE, THE DISALLOWANCE MADE BY THE AO IS CORRECT AND JUSTIFIED. THE ADDITION WAS ALSO SUPPORTED BY THE JUDGMENT OF HON BLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. GSRTC IN TAX APPEAL NO. 637 OF 2013 . THE GROUND OF APPEAL IS DISMISSED. ITA NO. 1082/AHD/16 [FINAR LTD. VS. DCIT ] A.Y. 2012-13 - 3 - IT HAS THEREFORE COME ON RECORD THAT THE CIT(A) HA S FOLLOWED HONBLE JURISDICTIONAL HIGH COURTS ORDER IN GUJARAT STATE ROAD TRANSPORT CORPORATION CASE (SUPRA) DECIDING THE VERY QUESTION OF LAW IN REVENU ES FAVOUR. WE FIND NO REASON TO INTERFERE WITH THE IMPUGNED DISALLOWANCE IN THIS LEGAL AND FACTUAL BACKDROP. THE ASSESSEES SOLE SUBSTANTIVE GROUND IS ACCORDINGLY R EJECTED. 4. THIS ASSESSEES APPEAL IS DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THIS T HE 21 ST DAY OF FEBRUARY, 2018.] SD/- SD/- ( AMARJIT SINGH ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 21/02/2018 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0