JCIT, (OSD), CIR-1(2), KOLKATA, Kolkata V. M/s Nellimarla Jute Mills Co. Ltd., Kolkata

ITA 1230/KOL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1470 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 31-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARINDAM BHATTACHARJEE CIT LD
• Assessee Lawyers: SUBASH AGARWAL LD
• Section: 143(3)

Judgement Text

1 ITA NO. 1230/KOL/2016 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: KOL KATA BEFORE: SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUD ICIAL MEMBER I.T.A NO. 1230/K OL/2016 A.Y: 2008 -09 J.C.I.T (OSD), CIR-1(2) VS. M/S. NELLIMARLA JUTE KOLKATA MILLS CO. LTD PAN: AABCN 5591M [APPELLANT] [RESPONDENT] FOR THE APPELLANT : SHRI ARINDAM BHATTACHARJEE , ADDL.CIT, LD.DR FOR THE RESPONDENT : SHRI SUBASH AGARWAL, ADVOCA TE, LD.AR DATE OF HEARING : 07-12-2018 DATE OF PRONOUNCEMENT : 16-02-2018 ORDER SHRI S.S.VISWANETHRA RAVI, JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DT. 31-03-2016 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS), 1, KOLKATA DT. 31-03-2016 FOR THE A.Y 2008-09. 2. THE ONLY ISSUE IS TO BE DECIDED AS TO WHETHER TH E CIT-A IS JUSTIFIED IN HOLDING THAT THE ASSESSEE IS ENTITLED TO CLAIM DEDUCTION OF DELAYED DEPOSITS OF PF AND ESI IN THE FACTS AND CIR CUMSTANCES OF THE CASE. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COMPANY AND ENGAGED IN THE BUSINESS OF MANUFACTURING OF JUTE GO ODS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO FOUND THAT THE ASSESSEE DEPOSITED EMPLOYEES CONTRIBUTION TO PF AMOUNTING T O RS.42,07,565/- AND CONTRIBUTION TO ESI AMOUNTING TO RS.31,11,655/- TO THE CONCERNED AUTHORITY BEYOND THE SPECIFIED DATE U/SEC . 36(1)(VA) R.W.S 2(24)(X) OF THE ACT. ACCORDINGLY, THE TOTAL AMOUNT OF RS.73,19,220/- ( RS.42,07,565 + RS.31,11,655) WAS ADDED TO THE TOTAL INCOME OF THE 2 ITA NO. 1230/KOL/2016 ASSESSEE BY AN ORDER DT. 31-12-2010 OF THE AO PASSE D U/S. 143(3) OF THE ACT. 4. IN APPEAL, THE CIT-A BY PLACING HIS RELIANCE IN THE CASE OF CIT VS. VIJAY SHREE LTD OF THE HONBLE HIGH COURT OF CA LCUTTA DELETED THE SAID ADDITION BY OBSERVING THAT THE DEDUCTION COULD BE ALLOWED EVEN IF IT IS PAID BEYOND THE SPECIFIED DATE, BUT BEFORE TH E FILING OF RETURN OF INCOME. RELEVANT PORTION OF HIS ORDER IS REPRODUCED HEREIN BELOW:- CONSIDERING THE FACTS OF THE CASE AND FOLLOWING TH E DECISION OF THE HONBLE CALCUTTA HIGH COURT AS MENTIONED ABOVE, I AM IN THE VIEW THAT THE ADDITION MADE BY THE AO IS NOT JUSTIFIED. THEREFORE, I DELETE THE ADDITI ON MADE BY THE AO OF RS.73,19,220/-. THIS GROUND IS ALLOWED. 5. THE LD.DR RELIED ON THE ORDER OF THE AO. ON THE OTHER HAND, THE LD.AR SUBMITS THAT THE ISSUE RAISED IN THE APPEAL I S COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE HIGH COURT OF CALCUTTA IN THE CASE OF SUPRA AND SUPPORTED THE IMPUGNED ORDER OF THE CIT-A . 6. HEARD BOTH THE PARTIES AND PERUSED THE RECORD. WE FIND THAT THE ISSUE IN HAND IS SQUARELY COVERED BY THE DECISIONS OF THE HONBLE SUPREME COURT IN THE CASES OF VINAY CEMENT LTD AND ALOM EXTRUSIONS LTD REPORTED IN (2009) 313 ITR (ST.1)(SC) AND IN ( 2009) 319 ITR 306(SC). WE FURTHER FIND THAT THE TRIBUNAL ON IDENT ICAL ISSUE IN ITA NO. 558/KOL/2016 FOR THE A.Y 2012-13 DT. 10-11-201 7 IN THE CASE OF DCIT, CIR-10(1), KOLKATA VS.M/S. LBI EXPORT PVT. LI MITED HAS DISPOSED OF THE SAME IN FAVOUR OF ASSESSEE. RELEVAN T PORTION OF WHICH IS REPRODUCED HEREIN BELOW:- 8. HEARD THE LD. DR AND PERUSED THE RECORD. WE FIN D THAT THE ISSUE IN HAND IS SQUARELY COVERED BY THE DECISIONS OF THE HONBLE SU PREME COURT IN THE CASES OF VINAY CEMENT LTD AND ALOM EXTRUSIONS LTD REPORTED IN (20 09) 313 ITR (ST.1)(SC) AND IN (2009) 319 ITR 306(SC). WE FIND THAT THE IMPUGNED A MOUNT TOWARDS EMPLOYEES CONTRIBUTION TO PF/ESI WERE DEPOSITED WELL BEYOND T HE DUE DATE OF FILING OF RETURN. RESPECTFULLY FOLLOWING THE AFORESAID JUDGMENTS OF T HE HONBLE SUPREME COURT IN THE CASES OF SUPRA, WE ARE OF THE VIEW THAT THE AO WAS NOT RIGHT IN MAKING THE IMPUGNED ADDITION. THE CIT-A WAS JUSTIFIED IN DIRECTING TO D ELETE THE SAME. WE UPHOLD THE IMPUGNED ORDER OF THE CIT-A AND IT IS JUSTIFIED. T HUS, THE GROUND(S) RAISED BY THE REVENUE IS LIABLE TO BE DISMISSED. 7. IN VIEW OF ABOVE, WE ARE OF THE VIEW THAT THE C IT-A WAS CORRECT IN DELETING THE SAME. THEREFORE, THE GROUND NO.1 RAISED BY THE REVENUE IS DISMISSED. 3 ITA NO. 1230/KOL/2016 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16- 02-2018 SD/- SD/- WASEEM AHMED S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 16-02-2018 PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT/REVENUE: THE JCIT (OSD), CIR-1(2), AAYKAR BHAWAN, P-7 CHOWRINGHEE SQUARE, 7 TH FLOOR, KOLKATA-69. 2 RESPONDENT /ASSESSEE: M/S. NELLIMARE JUTE MILLS COM PANY LIMITED 3A, SHAKESPEARE SARANI, KOLKATA-71. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, SR.PS/H.O.O ITAT KOLKATA