M/S PEEELL ALLOYS UNITS-II, JAMMU V. INCOME TAX OFFICER WARD-1(5), SAMBA

ITA 118/ASR/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4976 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 08-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAKESH KUM
• Assessee Lawyers: RAJAT MEN GI
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AMRITSAR IN THE INCOME TAX APPELLATE TRIBUNAL, AMRITSAR IN THE INCOME TAX APPELLATE TRIBUNAL, AMRITSAR IN THE INCOME TAX APPELLATE TRIBUNAL, AMRITSAR (CAMP BENCH AT JAMMU) (CAMP BENCH AT JAMMU) (CAMP BENCH AT JAMMU) (CAMP BENCH AT JAMMU) BEFORE: MR. JUSTICE P. P. BHATT, HONBLE BEFORE: MR. JUSTICE P. P. BHATT, HONBLE BEFORE: MR. JUSTICE P. P. BHATT, HONBLE BEFORE: MR. JUSTICE P. P. BHATT, HONBLE PRESIDENT PRESIDENT PRESIDENT PRESIDENT & SHRI G.S. PANNU & SHRI G.S. PANNU & SHRI G.S. PANNU & SHRI G.S. PANNU, HONBLE VICE PRESIDENT , HONBLE VICE PRESIDENT , HONBLE VICE PRESIDENT , HONBLE VICE PRESIDENT ITA NO.118/ASR/2019 ITA NO.118/ASR/2019 ITA NO.118/ASR/2019 ITA NO.118/ASR/2019 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 20 2020 20 14 1414 14 - -- - 15 1515 15 M/S PEE ELL ALLOYS UNITS M/S PEE ELL ALLOYS UNITS M/S PEE ELL ALLOYS UNITS M/S PEE ELL ALLOYS UNITS - -- - II, II,II, II, SIDCO I SIDCO I SIDCO I SIDCO INDUSTRIAL COMPLEX, NDUSTRIAL COMPLEX, NDUSTRIAL COMPLEX, NDUSTRIAL COMPLEX, BARI BRAHMANA, JAMMU, BARI BRAHMANA, JAMMU, BARI BRAHMANA, JAMMU, BARI BRAHMANA, JAMMU, JAMMU & KASHMIR. JAMMU & KASHMIR. JAMMU & KASHMIR. JAMMU & KASHMIR. PAN : AAFFP4043H. PAN : AAFFP4043H. PAN : AAFFP4043H. PAN : AAFFP4043H. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -1(5), 1(5), 1(5), 1(5), VIJAYPUR, SAMBA, VIJAYPUR, SAMBA, VIJAYPUR, SAMBA, VIJAYPUR, SAMBA, JAMMU & KASHMIR. JAMMU & KASHMIR. JAMMU & KASHMIR. JAMMU & KASHMIR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJAT MENGI, CA. RESPONDENT BY : SHR I RAKESH KUM AR, DR. DATE OF HEARING : 04.02.2021 04.02.2021 04.02.2021 04.02.2021 DATE OF PRONOUNCEMENT : 04.02.2021 04.02.2021 04.02.2021 04.02.2021 ORDER ORDER ORDER ORDER PER JUSTICE P.P. BHATT, PRESIDENT PER JUSTICE P.P. BHATT, PRESIDENT PER JUSTICE P.P. BHATT, PRESIDENT PER JUSTICE P.P. BHATT, PRESIDENT : :: : THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEA R 2014-15 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-2, LUD HIANA DATED 7 TH DECEMBER, 2018. 2. IN THIS APPEAL, ALTHOUGH THE ASSESSEE HAS RAISED MULTIPLE GROUNDS OF APPEAL BUT, ESSENTIALLY, THE GRIEVANCE IS ON ACC OUNT OF THE ACTION OF LEARNED CIT(A) IN SUSTAINING THE DISALLOWANCE OF EM PLOYEES SHARE OF CONTRIBUTION OF EPF/ESI OF RS.6,18,296/- AND ADHOC DISALLOWANCES OF RS.68,243/-, RS.35,962/-, RS.19,866/- AND RS.92,264 /- OUT OF CAR EXPENSES, TELEPHONE EXPENSES, BUSINESS PROMOTION & STAFF WELFARE EXPENSES AND TRAVELLING AND CONVEYANCE EXPENSES RES PECTIVELY. ITA-118/ASR/2019 2 3. INSOFAR AS THE DISALLOWANCE OF EMPLOYEES SHARE OF EPF/ESI CONTRIBUTION OF RS.6,18,296/- IS CONCERNED, IT WAS A COMMON GROUND BETWEEN THE PARTIES THAT SIMILAR ISSUE CAME UP BEFO RE THE TRIBUNAL IN ASSESSEES OWN CASE FOR AY 2009-10 AND, VIDE ORDER IN ITA NO.32/ASR/2014 DATED 10 TH SEPTEMBER, 2015, THE DISALLOWANCE WAS SET ASIDE. A COPY OF THE SAID DECISION HAS ALSO BEEN P LACED ON RECORD. IT IS NOTABLE THAT OUR PREDECESSOR BENCH, WHILE ALLOWING THE CLAIM OF THE ASSESSEE, REFERRED TO THE JUDGMENT OF HONBLE SUPRE ME COURT IN THE CASE OF CIT VS. VINAY CEMENT LTD. AS WELL AS THE JU DGMENT OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. DHARMENDRA SHARMA 297 ITR 320 (DELHI), UPHOLDING THE PROPOSITION THAT EVEN IN RESPECT OF EMPLOYEES CONTRIBUTION TOWARDS EPF/ESI; PAYMENTS M ADE BEFORE THE DUE DATE OF FILING OF RETURN SHALL NOT SUFFER DISAL LOWANCE. THE LEARNED REPRESENTATIVE OF THE ASSESSEE POINTED OUT THAT EVE N THE JUDGMENT OF HONBLE HIGH COURT OF PUNJAB & HARYANA IN THE CASE OF KAMAL FAMILY TRUST IN ITA NO.19 OF 2009 DATED 8 TH OCTOBER, 2012 IS TO THE SIMILAR EFFECT. IT WAS ALSO POINTED OUT THAT SUBSEQUENT TO THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE DATED 10 TH SEPTEMBER, 2015 (SUPRA), HONBLE SUPREME COURT IN THE CASE OF PCIT VS. RAJAS THAN STATE BEVERAGES CORPORATION LTD., ORDER DATED 4 TH JULY, 2017, HAS DISMISSED THE SLP PREFERRED BY THE REVENUE ON THIS ASPECT. I T WAS, THEREFORE, CONTENDED THAT THE MATTER NOW STANDS SETTLED AND, T HEREFORE, THE DISALLOWANCE MADE BY THE LEARNED CIT(A) IS COMPLETE LY UNWARRANTED. 4. LEARNED DR APPEARING FOR THE REVENUE HAS NOT CON TESTED ANY OF THE POINTS RAISED BY THE ASSESSEE BUT PLACED RELIAN CE ON THE ORDERS OF AUTHORITIES BELOW. 5. HAVING CONSIDERED THE RIVAL STANDS, WE FIND THAT IN VIEW OF THE PRECEDENTS CITED, THE IMPUGNED DISALLOWANCE IS UNSU STAINABLE AND THE ASSESSING OFFICER IS DIRECTED TO ALLOW THE CLAIM OF THE ASSESSEE FOR DEDUCTION OF RS.6,18,296/-. ITA-118/ASR/2019 3 6. INSOFAR AS THE ADHOC DISALLOWANCES OUT OF VARIOU S EXPENDITURE HEADS IS CONCERNED, WE HAVE PERUSED THE ORDER OF TH E ASSESSING OFFICER AND THE CIT(A) AND FIND THAT THERE IS NO SP ECIFIC INFIRMITIES POINTED OUT WHICH WOULD JUSTIFY THE ADHOC DISALLOWA NCES. THE DISALLOWANCES HAVE BEEN MADE PURELY ON ADHOC BASIS AND MERELY ON CONJECTURES AND SURMISES. ACCORDINGLY, THE SAME AR E LIABLE TO BE SET ASIDE. WE HOLD SO. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED AS ABOVE. ABOVE DECISION WAS ANNOUNCED ON CONCLUSION OF HEAR ING IN THE PRESENCE OF BOTH THE PARTIES ON 4 TH FEBRUARY, 2021. SD/- SD/- (G.S. PANNU) (G.S. PANNU) (G.S. PANNU) (G.S. PANNU) (JUSTICE P.P. BHATT) (JUSTICE P.P. BHATT) (JUSTICE P.P. BHATT) (JUSTICE P.P. BHATT) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT PRESIDENT COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT BY ORDER ASSISTANT REGISTRAR