Max Vigil Securities Pvt. Ltd., Ahmedabad V. The Asstt. Commissioner of Income Tax, Circle-2(1)(2), Ahmedabad

ITA 1157/AHD/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6118 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 07-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: AFAQ SAIYAD
• Section: 143(3)

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER &SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./I.T.A. NO. 1157/AHD/2018 ( / ASSESSMENT YEAR: 2015-16) MAX VIGIL SECURITIES PVT. LTD. 42, ASTHA COMPLEX, OPP. R.T.O., SUBHAS BRIDGE, AHMEDABAD- 380027 / VS. ACIT CIRCLE-2(1)(2), NAVJIVAN TRUST BUILDING, B/H. GUJARAT VIDYAPITH, OFF ASHRAM ROAD, AHMEDABAD- 380009 ./ ./PAN/GIR NO. : AAF CM0 319 Q ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI AFAQ SAIYAD, AR / RESPONDENT BY: SHRI MUDIT NAGPAL, SR. DR ! /DATE OF HEARING 29/07/2019 '# ! / DATE OF PRONOUNCEMENT 07/08/2019 $% /O R D E R PER AMARJIT SINGH - AM: THE APPEAL FILED BY THE ASSESSEE FOR A.Y. 2015-16, ARISE FROM ORDER OF THE CIT(A)-2, AHMEDABAD DATED 10.04.2018, IN PROCEEDING S UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS FILED AGAINST THE DECISION OF LD. CIT(A) IN CONFIRMING THE ADDITION OF RS. 2,32,54,40 1/- ON ACCOUNT OF DELAY IN CREDITING OF EMPLOYEES CONTRIBUTION TO PROVIDENT F UND AND ESIC U/S. 36(1)(VA) R.W.S. 2(24)(X) OF THE ACT MADE BY THE AO. 3. THE FACT IN BRIEF IS THAT ASSESSMENT U/S. 143(3) FOR THE YEAR UNDER CONSIDERATION WAS FINALIZED ON 05.05.2015. DURING THE COURSE OF ASSESSMENT THE AO HAS NOTICED THAT ITA NO. 1157/AHD/2018 A.Y. 2015-16 2 ASSESSEE HAS MADE LATE PAYMENT OF EMPLOYEES CONTRI BUTION TO PROVIDENT FUND AMOUNTING TO RS. 2,25,53,564/- AND ESIC AMOUNTING T O RS. 7,00,837/-. THE AO HAS OBSERVED THAT AS PER THE PROVISION OF SEC. 36(1)(VA ) R.W.S. 2(24)(X) THE DEDUCTION FROM EMPLOYEES CONTRIBUTION IS ALLOWABLE ONLY IF SUCH S UM IS CREDITED BY EMPLOYER TO THE EMPLOYEES ACCOUNT IN THE RELEVANT FUND ON OR BEFOR E THE DUE DATE. THE AO HAS ISSUED SHOW-CAUSE NOTICE TO THE ASSESSEE AND STATED THAT T HE ASSESSEE WAS AGREED FOR THE PROPOSED DISALLOWANCE. THEREFORE, AFTER PLACING RE LIANCE ON THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. GUJARAT S TATE ROAD TRANSPORT CORPORATION (TAX APPEAL NO. 637 OF 2013), THE AO HAS DISALLOWED THE AFORESAID AMOUNT AGGREGATING TO RS. 2,32,54,401/- AND ADDED TO THE T OTAL INCOME OF THE ASSESSEE. 4. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE L D. CIT(A). THE LD. CIT(A) AFTER REFERRING THE DECISION OF HONBLE GUJARAT HIG H COURT IN THE CASE OF CIT VS. GSRTC AS CITED ABOVE HAS DISMISSED THE APPEAL OF TH E ASSESSEE. 5. WE HAVE HEARD THE RIVAL CONTENTION AND PERUSED T HE MATERIAL ON RECORD. IT IS UNDISPUTED FACT THAT ASSESSEE HAS NOT DEPOSITED THE CONTRIBUTION RECEIVED FROM THE EMPLOYEES UNDER THE PROVIDENT FUND ACT AND THE ESI ACT WITHIN THE DUE DATE AS PRESCRIBED UNDER THE PROVIDENT FUND AND THE ESI ACT AMOUNTING TO RS. 2,32,54,401/-. WE CONSIDER THAT THE HONBLE JURISDICTIONAL HIGH CO URT IN THE CASE OF CIT VS. GSRTC 265 CTR 64 HAS HELD THAT WHEN THE EMPLOYER HAS NOT CREDITED THE SUM RECEIVED BY IT AS EMPLOYEES CONTRIBUTION TO EMPLOYEES ACCOUNT IN RELEVANT FUND ON OR BEFORE DUE DATE AS PRESCRIBED IN EXPLANATION TO SEC. 36(1)(VA) THE ASSESSEE SHALL NOT BE ENTITLED TO DEDUCTION. IN VIEW OF THE ABOVE FACTS AND THE JUDI CIAL FINDINGS WE UPHELD THE DECISION OF LD. CIT(A). THEREFORE, THE APPEAL OF THE ASSESS EE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. SD/- SD/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNT ANT MEMBER AHMEDABAD: DATED 07/08/2019 TANMAY THIS ORDER PRONOUNCED IN OPEN COURT ON 0 7/08/2019 ITA NO. 1157/AHD/2018 A.Y. 2015-16 3 / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. $ / ASSESSEE 3. &' ( / CONCERNED CIT 4. ( - / CIT (A) 5. )*+ ' , ! ' , ,-$&$ / DR, ITAT, AHMEDABAD 6. +. / / GUARD FILE. BY ORDER / $% , 0 / , ! ' , ,-$&$ 1 1.DATE OF DICTATION ON 06.08.2019 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 06.08.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 07.08.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 07.08.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 07.08.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 07.08.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER