M/S K.S. CAPITAL SERVICES PVT. LTD., JAIPUR V. INCOME TAX OFFICER, WARD-2-2, JAIPUR

ITA 1196/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4217 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 15-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K C MEENA CIT DHK
• Section: 143(3); 250; 139(1)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES A, JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; ,OA JH FOT; IKY JKO] U;KF;D LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA, AM & SHRI VIJAY PAL RAO, JM VK;DJ VIHY LA -@ ITA NO. 1196/JP/2018 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2013-14 M/S K.S. CAPITAL SERVICES PVT. LTD., NATIONAL MOTORS BUILDING, M.I. ROAD, JAIPUR. CUKE VS. I.T.O., WARD 2(2), JAIPUR. LFKK;H YS[KK LA -@THVKBZVKJ LA-@ PAN/GIR NO.: AAACK 7044 B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI P.C. PARWAL (CA) JKTLO DH VKSJ LS @ REVENUE BY : SHRI K.C. MEENA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 07/05/2019 MN?KKS 'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 10/05/2019 VKNS'K@ ORDER PER: R.C. SHARMA, A.M. THIS IS THE APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-I, JAIPUR DATED 21/08/2018 FOR THE A.Y. 2013-14 IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED FOR DISALLOWANCE OF EMPLOYEES CONTRIBUTION OF PF OF RS. 1,09,257/- AND ESI OF RS. 8,302/- BY INVOKING PROVISIONS OF SECTION 2(24)(X) R.W.S. 36(1)(VA) OF THE ACT. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. WE FOUND THAT THE A.O. HAS DISALLOWED CONTRIBUTION BY OBSERVANT THAT THE EMPLOYEES ITA 1196/JP/2018_ KS CAPITAL SERVICES P LTD. VS ITO 2 CONTRIBUTION TOWARDS PF OF RS.1,07,257/- AND ESI OF RS.8,302/- HAS BEEN DEPOSITED BEYOND THE STIPULATED TIME AS ALLOWED U/S 36(1) R.W.S. 2(24)(X) OF THE ACT. 4. BY THE IMPUGNED ORDER, THE LD. CIT(A) CONFIRMED THE ACTION OF THE AO BY PLACING RELIANCE ON THE DECISION OF THE HON'BLE RAJASTHAN HIGH COURT IN CASE OF PCIT VS. M/S RAJASTHAN RENEWABLE ENERGY CORPORATION LIMITED IN DB ITA NO.10, 11 & 12/2018 IN ORDER DATED 13.03.2018 WHERE IT WAS HELD THAT 'WITH REGARDS TO ISSUE NOS. 2 & 3, THE CONTROVERSY IS PENDING BEFORE THE SUPREME COURT IN CIT VS. STATE BANK OF BIKANER & JAIPUR IN SLP(C) NO. 16249/2014, THEREFORE, SUBJECT TO THE DECISION OF SLP, FOR THE PRESENT, THESE ISSUES ARE DECIDED IN THE FAVOUR OF THE DEPARTMENT AND AGAINST THE ASSESSE. IT WILL BE OPEN FOR THE DEPARTMENT TO RECOVER THE AMOUNT IF THE DECISION IS IN THEIR FAVOUR'. ACCORDINGLY, HE CONFIRMED THE DISALLOWANCE MADE BY THE AO. 5. IT WAS ARGUED BY THE LD AR OF THE ASSESSEE THAT THE ASSESSEE DEPOSITED THE EMPLOYEES' CONTRIBUTION TOWARDS ES] BEFORE THE DUE DATE OF FILING OF RETURN. THE HON'BLE JURISDICTIONAL HIGH COURT IN VARIOUS CASES I.E., CIT VS. STATE BANK OF BIKANER & JAIPUR (2014) 99 DTR 131, CIT VS. JAIPUR VIDYUT VITRAN NIGAM LTD. 363 ITR 307, CIT VS. UDAIPUR DUGDH UTPADAK SAHAKARI SANGH LTD. (2013) 366 ITR 163, PCIT VS. RAJASTHAN STATE BEVERAGES CORPORATION LTD. AND CIT VS. M/S RAJASTHAN STATE GANGANAGAR ITA 1196/JP/2018_ KS CAPITAL SERVICES P LTD. VS ITO 3 SUGAR MILLS LTD. (2017) 393 ITR 0421 HAS HELD THAT WHERE THE EMPLOYEES CONTRIBUTION TO PF/ESI IS DEPOSITED BEFORE DUE DATE OF FILING OF RETURN, THE SAME CANNOT BE DISALLOWED U/S 36(I)(VA). THE HON'BLE SUPREME COURT HAS DISMISSED THE SLP OF THE DEPARTMENT IN CASE OF CIT VS. RAJASTHAN STATE BEVERAGES CORPORATION LTD. (2017) 250 TAXMAN 16/84 TAXMANN.COM 185/2017 ITL 1553. 6. ON THE OTHER HAND, THE LD DR HAS RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 7. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM THE RECORD THAT THE LD. CIT(A) HAS INCORRECTLY INTERPRETED THE DECISION OF THE HON'BLE RAJASTHAN HIGH COURT IN CASE OF PCIT VS. M/S RAJASTHAN RENEWABLE ENERGY CORPORATION LIMITED IN DB ITA NO.10, 11 & 12/2018 IN ORDER DATED 13.03.2018. THE HON'BLE HIGH COURT HAS HELD THAT 'SUBJECT TO THE DECISION OF SLP, FOR THE PRESENT, THESE ISSUES ARE DECIDED IN THE FAVOUR OF THE DEPARTMENT AND AGAINST THE ASSESSEE. IT WILL BE OPEN FOR THE DEPARTMENT TO RECOVER THE AMOUNT IF THE DECISION IS IN THEIR FAVOUR'. THUS, WHAT THE HON'BLE COURT HAS STATED IN THE ORDER IS THAT THE HON'BLE SUPREME COURT HAS ADMITTED THE SLP IN CASE OF STATE BANK OF BIKANER & JAIPUR (WHICH WAS DECIDED IN FAVOUR OF ASSESSEE) THE APPEAL IN CASE OF RREC IS DECIDED IN FAVOUR OF ASSESSEE AND ITA 1196/JP/2018_ KS CAPITAL SERVICES P LTD. VS ITO 4 AGAINST THE DEPARTMENT AND IT WILL BE OPEN FOR THE DEPARTMENT TO RECOVER THE AMOUNT IF THE DECISION OF SLP IS IN THEIR FAVOUR BUT BY MISTAKE HAS MENTIONED THAT ISSUE IS DECIDED IN FAVOUR OF DEPARTMENT AND AGAINST THE ASSESSEE. IF THE ISSUE IS TO BE DECIDED IN FAVOUR OF DEPARTMENT THEN THERE IS NO NEED OF THE SUBSEQUENT SENTENCE THAT 'IT WILL BE OPEN FOR THE DEPARTMENT TO RECOVER THE AMOUNT IF THE DECISION IS IN THEIR FAVOUR'. THEREFORE, THE DECISION SHOULD BE READ IN WHOLE AND NOT BY PICKING SOME WORDS OF THE ORDER. 8. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY MERIT IN THE DISALLOWANCE SO MADE IN RESPECT OF THE CONTRIBUTION WHICH HAS BEEN MADE BEFORE LAST DATE OF FILING OF RETURN OF INCOME. ACCORDINGLY, WE DIRECT THE A.O. TO DELETE THE DISALLOWANCE AFTER VERIFYING THE ACTUAL DATE OF PAYMENT I.E. WHETHER BEFORE OR AFTER LAST DATE OF FILING OF RETURN OF INCOME U/S 139(1) OF THE ACT. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED IN TERMS INDICATED HEREINABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH MAY, 2019. SD/- SD/- FOT; IKY JKO JES'K LH 'KEKZ (VIJAY PAL RAO) (RAMESH C SHARMA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 10 TH MAY, 2019 ITA 1196/JP/2018_ KS CAPITAL SERVICES P LTD. VS ITO 5 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- M/S K.S. CAPITAL SERVICES PVT. LTD., JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE I.T.O., WARD 2(2), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 1196/JP/2018) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR