Lalchand Resorts Private Limited, Bhubaneswar V. DCIT, Corporate Circle-1(1), Bhubaneswar

ITA 124/CTK/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7235 (ITAT-CUTTACK)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 02-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 124 /CTK/201 8 ASSESSMENT YEAR : 201 4 - 2015 LALCHAND RESORTS PVT LTD., PLOT NO.06, HOTEL NEW MARRION, JANPATH, BHUBANESWAR. VS. DCIT, CORPORATE CIRCLE 1(1), BHUBANESWAR. PAN/GIR NO. AAACL 7289 H (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI (WRITTEN SUBMISSION) REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 31 /0 7 / 2018 DATE OF PRONOUNCEMENT : 31 /0 7 / 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 1, BHUBANESWAR DATED 7.12.2017 FOR THE ASSESSMENT YEAR 2014 - 15. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER DISALLOWING RS.8,98,981/ - U/S.2(24)(X) R.W.SEC 36(1)(VA) OF THE ACT IN RESPECT OF EMPLOYEES PF & ES I . 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVER, A WRITTEN SUBMISSION IS PLACED ON RECORD BY LD A.R. OF THE ASSESSEE. IN VIEW OF 2 ITA NO.124/CTK/2018 ASSESSMENT YEAR : 2014 - 2015 ABOVE, WE PROCEED TO DISPOSE OF THE APPEAL OF THE ASSESSEE AFTER HEARING LD D.R. AND ON THE BASIS OF WRITTEN SUBMISSION. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE A SSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS NOT DEPOSITED RS. RS.8,98,981/ - U/S.2(24)(X) R.W.SEC 36(1)(VA) OF THE ACT IN RESPECT OF EMPLOYEE S CONTRIBUTION TO E PF & ESI WITHIN THE STIPULATED DUE DATE U/S.36(1)(VA) OF THE ACT AND, THEREFORE, HE ADDED THE SAME TO THE INCOME OF THE ASSESSEE. 5. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER FOLLOWING THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORT CORPORATION, 366 ITR 170 (GUJ). 6. IN TH E WRITTEN SUBMISSION, IT IS SUBMITTED BY LD A.R. OF THE ASSESSEE THAT THE ISSUE IS SQUARE COVERED BY THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF RAJASTHAN STATE BEVERAGE CORPORATION LTD. (2017), 84 TAXMANN.COM 185(SC), WHEREIN, IT HAS BEEN HELD T HAT NO DISALLOWANCE OF DEDUCTION FOR EMPLOYEE S CONTRIBUTION TO PF AND ESI IS TO BE MADE WHERE THE AMOUNT IS DEPOSITED BY THE ASSESSEE WITHIN THE TIME PRESCRIBED FOR FILING RETURN OF INCOME U/S.139(1) OF THE ACT, WHICH IS ALSO FOLLOWED BY THE ITAT CUTTACK IN THE CASE OF OCP INDIA PVT LTD. VS ACIT, ITA NO.145/CTK/2017 FOR A.Y. 2012 - 13, ORDER DATED 6.3.2018, COPY OF WHICH IS PLACED ON RECORD. 7. LD D.R. AGREED TO THE SUBMISSION OF LD A.R. OF THE ASSESSEE. 3 ITA NO.124/CTK/2018 ASSESSMENT YEAR : 2014 - 2015 8. AFTER HEARING LD D.R. AND PERUSING THE WRITTEN SUBM ISSION FILED BY THE ASSESSEE, WE FIND THAT THE ASSESSEE HAS DEPOSITED EMPLOYEES CONTRIBUTION TO PF OF RS.7,85,825/ - AND ESI OF RS.1,13,156/ - AGGREGATING TO RS.8,98,981/ - WITHIN THE DUE DATE PRESCRIBED U/S.139(1) OF THE ACT AS IS EVIDENT FROM THE ASSESSME NT ORDER AND THE ADDITION HAS BEEN MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE CIT(A) ON THE GROUND THAT SAME WAS NOT DEPOSITED WITHIN THE DUE DATE PRESCRIBED UNDER THE RESPECTIVE ACTS . WE FIND THAT THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF RAJASTHAN STATE BEVERAGE CORPORATION LTD., (SUPRA), WHEREIN, IT WAS HELD AS UNDER: SECTION 43B, READ WITH SECTION 36(1)(VA), OF THE INCOME TAX ACT, 1961 - BUSINESS DISALLOWANCE - CERTAIN DEDUCTION TO BE ALLOWED ONLY ON `ACTUAL PAYMENT (PF & ESI CONSTRUCTION) - HIGH COURT BY THE IMPUGNED ORDER HELD THAT AMOUNT CLAIMED ON PAYMENT OF PF AND ESI HAVING BEEN DEPOSITED ON OR BEFORE DUE DATE OF FILING OF RETURNS, SAME COULD NOT BE DISALLOWED UNDER SECTION 43B OR UNDER SECTION 36(1)(VA) - WHETHER SLP AGAIN ST SAID IMPUGNED ORDER WAS TO BE DISMISSED - HELD YES (PARA 2) IN FAVOUR OF ASSESSEE. 9. IN THE INSTANT CASE, IT IS NOT IN DISPUTE THAT THE CONTRIBUTION TO PF AND ESI WAS DEPOSITED BY THE ASSESSEE BEFORE DUE DATE OF FILING THE RETURN OF INCOME U/S.139(1) O F THE ACT. THEREFORE, WE SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DELETE THE DISALLOWANCE OF EMPLOYEES CONTRIBUTION TO PF AND ESI OF RS. 8,98,981 / - AND ALLOW TH E GROUND OF APPEAL OF THE ASSESSEE. 4 ITA NO.124/CTK/2018 ASSESSMENT YEAR : 2014 - 2015 10. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 31 /0 7 /2018. S D/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 31 /0 7 /2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : LALCHAND RESORTS PVT LTD., PLOT NO.06, HOTEL NEW MARRION, JANPATH, BHUBANESWAR 2. THE RESPONDENT. DCIT, CORPORATE CIRCLE 1(1), BHUBANESWAR 3. THE CIT(A) - 1, BHUBANESWAR 4. PR.CIT - 1, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//