Dy. Commissioner of Income Tax, Circle-2(2), Hyderabad V. Hawk Security Services Private Limited, Secunderabad

ITA 1217/Hyd/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2261 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 13-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: U MINICHANDRAN
• Assessee Lawyers: N O N E
• Section: 43B

Judgement Text

ITA NO.1217 OF 2017 HAWK SECURITY SERV ICES P LTD SECUENDERABAD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.1217/HYD/2017 (ASSESSMENT YEAR: 2013-14) DY. COMMISSIONER OF INCOME TAX, CIRCLE 2(2) HYDERABAD VS M/S. HAWK SECURITY SERVICES PVT. LTD SECUNDERABAD PAB: AAACH 4942 H (APPELLANT) (RESPONDENT) FOR REVENUE : SMT. U. MINICHANDRAN, DR FOR ASSESSEE : N O N E O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2013-14. IN T HIS APPEAL, THE ONLY GROUND RAISED BY THE REVENUE IS AG AINST THE ORDER OF THE CIT (A) IN HOLDING THAT THE EMPLOYEES CONTRIBUTION TOWARDS PF IS ALLOWABLE AS A DEDUCTION BOTH U/S 43B AND U/S 36(1)(VA) OF THE ACT. 2. WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE COORDINATE BENCHES IN THE CASES OF VIGNAN VIDYALAYAS LTD VS. DCIT IN ITA NOS.1014 & 1015/HYD/2016, DATED 29.11.2017 AND IN THE CASE OF M/S. NAGARJUNA ENGG. CONSTRUCTIONS VS. ACIT IN ITA NO.76 6/HYD/2017 DATE OF HEARING: 12.12 . 2017 DATE OF PRONOUNCEMENT: 15.12.2017 ITA NO.1217 OF 2017 HAWK SECURITY SERV ICES P LTD SECUENDERABAD. PAGE 2 OF 3 DATED 30.11.2017 TO WHICH BOTH OF US (AM & JM) ARE SIGNATORIES. THE RELEVANT PORTION OF THE ORDER IS REPRODUCED HER EUNDER: 15. WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY VARIOUS DECISIONS OF THIS TRIBUNAL WHERE THE ABOVE TWO DECISIONS HAVE BEEN CONSIDERED. IN VIEW OF THE DECISION OF THIS TRIBUNA L IN THE CASE OF M/S. NAGARJUNA ENGINEERING CONSTRUCTIONS VS. ACIT IN ITA NO.766/HYD/2017, DATED 30.11.2017 WHEREIN AT PARA 6, IT HAS BEEN HELD AS UNDER: 6. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THAT AS REGARDS THE ALLOWABILITY OF DEDUCTION U/S 43B OF THE ACT OF EMPLOYERS CONTRIBU TION TO PF AND ESIC, THE HON'BLE SUPREME COURT HAS HELD THA T IF IT IS PAID ON OR BEFORE THE DUE DATE OF THE FILING OF THE RETURN U/S 139(1) OF THE ACT, IT IS ALLOWABLE. AS REGARDS THE APPLICABILITY OF SUCH PROVISO TO THE DISALLOWANCE M ADE U/S 36(1)(VA) OF THE ACT, WE FIND THAT DECISIONS ARE BO TH AGAINST AND IN FAVOUR OF THE ASSESSEE. WE FIND THAT THE COO RDINATE BENCH OF THIS TRIBUNAL AT VISAKHAPATNAM IN THE CASE OF DCIT VS. EASTERN POWER DISTRIBUTION COMPANY OF A.P. LTD (CITED SUPRA) HAS CONSIDERED ALL THE ABOVE DECISION S REFERRED TO BY THE ASSESSEE AS WELL AS THE DR AND H AS HELD THAT THERE IS NO DISTINCTION BETWEEN THE EMPLOYEES AND EMPLOYERS CONTRIBUTION OF PF AND IF THE TOTAL CONT RIBUTION IS DEPOSITED ON OR BEFORE THE DUE DATE OF FURNISHIN G THE RETURN U/S 139(1) OF THE ACT, THEN NO DISALLOWANCE CAN BE MADE OF EMPLOYEES CONTRIBUTION TO PF. RESPECTFULLY FOLLOWING THE DECISION OF THE COORDINATE BENCH ON S IMILAR SET OF FACTS, THIS APPEAL OF THE ASSESSEE IS ALLOWE D. RESPECTFULLY FOLLOWING THE SAME, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT (A). THEREFORE, REVENUES APPEAL IS DISMISSED. ITA NO.1217 OF 2017 HAWK SECURITY SERV ICES P LTD SECUENDERABAD. PAGE 3 OF 3 3. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH DECEMBER, 2017. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDIC IAL MEMBER HYDERABAD, DATED 15 TH DECEMBER, 2017. VINODAN/SPS COPY TO: 1 DCIT, CIRCLE 2(2), ROOM NO.513, 5 TH FLOOR, SIGNATURE TOWERS, KONDAPUR, HYDERABAD 2 M/S. HAWK SECURITY SERVICES PVT. LTD., CHANDRALOK COMPLEX, 2 ND FLOOR, SD ROAD, SECUNDERABAD 3 CIT (A)-9 HYDERABAD 4 PR. CIT 2 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER