DCIT CIR 15(3)(1), MUMBAI V. TIGER STEEL ENGINEERING INDIA PRIVATE LIMITED, NAVI MUMBAI

ITA 1192/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2738 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2014-2015
• Appeal Filed On: 01-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT PRATAP SINGH
• Assessee Lawyers: ANAND KOLAGE
• Keywords: Tax effect; Set aside
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E , MUMBAI BEFORE SHRI C.N. PRASAD , HONBLE JUDICIAL MEMBER AND SHRI M. BALAGANESH , HONBLE ACCOUNTANT MEMBER ITA NO . 1192 / MUM/201 9 ( A.Y: 201 4 - 15) DCIT CIRCLE 15(3)(1) R.NO. 451, 4 TH FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400 020 V. M/S. TIGER STEEL ENGINEERING INDIA PVT. LTD., 4 TH FLOOR, BLDG. NO. 5, SECTOR 3 MILLENNIUM BUSINESS PARK, MAHAPE NAVI MUMBAI 400 710 PAN: AAACT2537J (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ANAND KOLAGE DEPARTMENT BY : SHRI AMIT PRATAP SINGH DATE OF HEARING : 16.03.2020 DATE OF PRONOUNCEMENT : 16.03.2020 O R D E R PER BENCH THIS APPEAL IS FILED BY THE R EVENUE AGAINST O RDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 24 , MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] DATED 26.11.2018 FOR THE A . Y . 2014 - 15 . 2. THE REVENUE IN ITS APPEAL HAS RAISED FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS. 64,64,964/ - ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PROVIDENT FUND AND ESIC, WHICH WAS PAID BEYOND THE DATE PRESCRIBED IN THE RELEVANT ACT, 2 ITA NO. 1192/MUM/2019 (A.Y: 2014 - 15) M/S. TIGER STEEL ENGINEERING INDIA PVT. LTD., RELYING ON THE DECISION OF THE HON. APEX COURT IN THE CASE OF ALOM EXTRUSION LTD. 1319 ITR 306) WHICH IS NOT RELEVANT TO SECTION 36(1 ) (VA) OF THE ACT.' 2. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS. 64.64.964/ - ON ACCOUNT OF EMPLO YEES CONTRIBUTION TO PROVIDENT FUND AND ESIC, WHICH WAS PAID BEYOND THE DATE PRESCRIBED IN THE RELEVANT ACT, THEREBY IGNORING THE CBDT CIRCULAR NO.22/2015 DATED 17.12.2015 WHEREIN THE ISSUE HAS BEEN MADE CLEAR AND IT IS SPECIFICALLY HIGHLIGHTED THAT THE SU PREME COURT DECISION IN THE CASE OF ALOM EXTRUSION LTD. (319 ITR 306) AND THE CIRCULAR DOES NOT APPLY TO CLAIM OF EMPLOYEES CONTRIBUTION TO WELFARE FUNDS WHICH ARE GOVERNED BY SECTION 36(1 )(VA) OF THE ACT 3. 'THE APPELLANT PRAYS THAT THE ORDER OF THE LD. CIT(A) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE AO BE RESTORED. 4 . THE APPLICANT CRAVES LEAVE TO ADD, AMEND OR ALTER ANY GROUNDS OR ADD NEW GROUND, WHICH M AY BE NECESSARY' 3. AT THE TIME OF HEARING, ASSESSEE THROUGH LETTER DATED 12.03.2018 SOUGHT AN ADJOURNMENT AS THE MOTHER OF THE VICE PRESIDENT - FINANCE & ACCOUNTS WA S UNWELL. 4. ON A PERUSAL OF THE GROUNDS OF APPEAL WE FIND THAT THE ONLY ISSUE RAISED BY THE REVENUE IN ITS APPEAL IS IN RESPECT OF DELETING THE DISALLOWANCE OF .64,64,964/ - ON ACCOUNT OF E MPLOYEES CONTRIBUTION TO PROVIDENT FUND AND ESIC. THE TAX EFFECT IN THIS APPEAL IS LESS THAN .50 LAKHS. EVEN OTHERWISE ON MERITS THE LD.CIT(A) FOLLOWING THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT V. HINDUSTAN ORGANIC CHEMICALS LTD ., [366 ITR 1] AND THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ALOM EXTRUSION LTD., [319 ITR 306] DELETED 3 ITA NO. 1192/MUM/2019 (A.Y: 2014 - 15) M/S. TIGER STEEL ENGINEERING INDIA PVT. LTD., THE DISALLOWANCE MADE BY THE ASSESSING OFFICER OBSERVING THAT CONTRIBUTION PAYABLE BY THE EMPLOYER TO THE PF OR ANY OTHER MODE FOR THE WE LFARE OF THE EMPLOYEES WAS ALLOWABLE IF PAID BEFORE THE DUE DATE OF FILING RETURN. IN HOLDING SO, WE DO NOT SEE ANY INFIRMITY IN THE ORDER PASSED BY THE LD.CIT(A). THUS, SINCE THE TAX EFFECT IS BELOW .50 LAKHS AND IN VIEW OF THE CBDT CIRCULAR NO. 17/201 9 DATED 08.08.2019 IN F.NO.279/MISC.142/2007 - ITJ (PT), THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE AND EVEN ON MERITS THE ISSUE IS COVERED BY THE DECISION OF THE HON'BLE BOMBAY HIGH COURT AND THE HON'BLE SUPREME COURT , W E SUSTAIN THE ORDER OF THE LD.CIT(A) AND DISMISS THE APPEAL OF THE REVENUE . 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 16 TH MARCH , 2020 S D/ - S D/ - ( M. BALAGANESH ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 16/03/2020 GIRIDHAR, SR.PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER, (ASSTT. REGISTRAR) ITAT, MUM