M/S.KASHMIR DISTILLERIES. PVT.LTD, JAMMU V. INCOME TAX OFFICER WARD-1(5), SAMBA

ITA 120/ASR/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4741 (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
• 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.120 ITA NO.120 ITA NO.120 ITA NO.120 /ASR/2019 /ASR/2019 /ASR/2019 /ASR/2019 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 20 2020 20 14 1414 14 - -- - 15 1515 15 M/S KASHMIR DISTILLERIES M/S KASHMIR DISTILLERIES M/S KASHMIR DISTILLERIES M/S KASHMIR DISTILLERIES PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., S SS SIDCO INDUSTRIAL COMPLEX, IDCO INDUSTRIAL COMPLEX, IDCO INDUSTRIAL COMPLEX, IDCO INDUSTRIAL COMPLEX, BARI BRAHMNA, BARI BRAHMNA, BARI BRAHMNA, BARI BRAHMNA, JAMMU, JAMMU, JAMMU, JAMMU, JAMMU & KASHMIR. JAMMU & KASHMIR. JAMMU & KASHMIR. JAMMU & KASHMIR. PAN : AAACK6683N. PAN : AAACK6683N. PAN : AAACK6683N. PAN : AAACK6683N. 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 RAKE SH KUMAR, 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 14 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.81,040/- AND ADHOC DI SALLOWANCES OF RS.42,458/-, RS.28,370/- AND RS.21,075/- OUT OF VEH ICLE RUNNING & MAINTENANCE, TRAVELLING & CONVEYANCE EXPENSES AND R EPAIR AND MAINTENANCE OF PLANT & MACHINERY RESPECTIVELY. ITA-120/ASR/2019 2 3. INSOFAR AS THE DISALLOWANCE OF EMPLOYEES SHARE OF EPF/ESI CONTRIBUTION OF RS.81,040/- IS CONCERNED, IT IS OBS ERVED THAT A SIMILAR ISSUE HAD COME UP BEFORE THIS BENCH IN ITA NO.118/A SR/2019 WHEREIN, VIDE ORDER OF EVEN DATE, WE HAVE HELD AS UNDER :- 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 SIMILA R ISSUE CAME UP BEFORE 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 DEC ISION HAS ALSO BEEN PLACED 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 W ELL AS THE JUDGMENT 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 MADE BEFORE THE DUE DATE OF FILING OF RETURN SHALL NOT SUFFER DISALLOWANCE. THE LEARNED REPRESENTATIVE OF THE ASSESSEE POINTED OUT THAT EVEN THE JUDGMENT OF HON BLE 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. RAJASTHAN STATE BEVERAGES CORPORATION LTD., ORDER DATED 4 TH JULY, 2017, HAS DISMISSED THE SLP PREFERRED BY THE REVENUE ON THIS ASPECT. IT WAS, THEREFORE, CONTENDED THAT THE MATTER NOW STANDS SETTLED AND, THEREFORE, THE DISALLOWANCE MADE BY THE LEARNED CIT (A) IS COMPLETELY UNWARRANTED. 4. LEARNED DR APPEARING FOR THE REVENUE HAS NOT CONTESTED ANY OF THE POINTS RAISED BY THE ASSESSEE BUT PLACED RELIANCE 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 UNSUSTAINABLE AND THE ASSESSING OFF ICER IS DIRECTED TO ALLOW THE CLAIM OF THE ASSESSEE FOR DEDUCTION OF RS.6,18,296/-. ITA-120/ASR/2019 3 4. ACCORDINGLY, FOLLOWING OUR ORDER OF EVEN DATE CI TED SUPRA, WE HOLD THAT THE DISALLOWANCE OF RS.81,040/- MADE ON A CCOUNT OF EMPLOYEES SHARE OF EPF/ESI IS UNSUSTAINABLE AND TH E ASSESSING OFFICER IS DIRECTED TO ALLOW THE CLAIM OF THE ASSESSEE ON T HIS COUNT. 5. 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. 6. 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) (JUSTIC (JUSTIC (JUSTIC (JUSTICE P.P. BHATT) E P.P. BHATT) E P.P. BHATT) E 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