Dual Rings Private Limited, Secunderabad, Hyderabad V. ITO, Ward-17(1), Hyderabad, Hyderabad

ITA 124/HYD/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2629 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 14-08-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 25-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: P RAVI SESHAGIRI RAO
• Section: 43B; 143(3)

Judgement Text

ITA NO 124 OF 2 017DUAL RINGS P LTD SECUNDERABAD PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A (SMC) BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.124/HYD/2017 (ASSESSMENT YEAR: 2013-14) M/S. DUAL RINGS PVT. LTD SECUNDERABAD PAN: AAACD 7181 N VS INCOME TAX OFFICER WARD 17 ( 1 ) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P.RAVI SESHAGIRI RAO FOR REVENUE : SMT. SUMAN MALIK, DR O R D E R THIS IS ASSESSEES APPEAL FOR THE A.Y 2013-14 AGAI NST THE ORDER OF THE CIT (A)-9, HYDERABAD DATED 31.10.2 016. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THE ORDER OF THE LEARNED CIT (A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LEARNED CIT (A) ERRED IN CONFIRMING THE DISALLOWANCE MADE BY THE AO OF RS.2,49,231 ON THE GROUND THAT THE SAME RELATES TO THE EMPLOYEES PROVIDENT FUND CONTRIBUTION AND THE EMPLOYEES SHARE OF ESI PAID AFTER THE DUE DATE PRESCRIBED U/S 36(1) (VA) OF THE I.T. ACT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY, ENGAGED IN MANUFACTURE OF BEARINGS, FILED ITS RETUR N OF INCOME FOR THE A.Y 2013-14 ELECTRONICALLY ON 27.09.2013 DECLARI NG LOSS OF RS.1,72,832. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF DATE OF HEARING : 21.08.2017 DATE OF PRONOUNCEMENT : 30.08.2017 ITA NO 124 OF 2 017DUAL RINGS P LTD SECUNDERABAD PAGE 2 OF 4 THE ACT, THE AO NOTICED THAT THE EMPLOYEES CONTRIBU TION OF P.F. AMOUNTING TO RS.2,22,219 AND ESI OF RS.27,012 WERE PAID BEYOND THE DUE DATE. WHEN INQUIRED, THE ASSESSEE REPLIED T HAT THE PAYMENT WAS MADE BEFORE FILING THE RETURN OF INCOME . HOWEVER, THE AO WAS NOT SATISFIED AND MADE A DISALLOWANCE U/ S 43B OF THE I.T. ACT. AGGRIEVED, THE ASSESSEE PREFERRED AN APPE AL BEFORE THE CIT (A) WHO CONFIRMED THE ORDER OF THE AO AND THE A SSESSEE IS IN SECOND APPEAL BEFORE THIS TRIBUNAL. 3. THE LEARNED COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW AND S UBMITTED THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSE E BY THE DECISION OF THE COORDINATE BENCH OF THIS TRIBUNAL IN THE CAS E OF M/S. GVK TECHNICAL AND CONSULTANCY P LTD IN ITA NO.1248/HYD/ 2015 AND M/S. TRANSGRAPH CONSULTING P LTD IN ITA NO.21/HYD/2 017. COPIES OF THE ORDERS ARE FILED BEFORE ME. 4. THE LEARNED DR HOWEVER, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, I FIND THAT THE HON'BLE SUPREME COURT IN THE CASE OF ALOM EXTRUSIONS REPORTED IN 319 ITR 306 HAS HELD TH AT THE CONTRIBUTIONS TO THE PF & ESI ARE ALLOWABLE U/S 43B OF THE ACT IF THEY ARE PAID BEFORE THE DUE DATE OF FILING OF THE RETURN OF INCOME. AFTER CONSIDERING VARIOUS OTHER DECISIONS, THE TRIB UNAL IN THE CASE OF M/S. GVK TECHNICAL & CONSULTANCY P LTD (CITED SU PRA) HAS AT PARA 4 HELD AS UNDER: ITA NO 124 OF 2 017DUAL RINGS P LTD SECUNDERABAD PAGE 3 OF 4 4. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THAT THE HON'BLE SUPREM E COURT IN THE CASE OF ALOM EXTRUSIONS 319 ITR 306 HA S HELD THAT THE CONTRIBUTIONS TO P.F. AND ESI ARE ALL OWABLE UNDER SECTION 43B OF THE ACT IF THEY ARE PAID BEFORE THE DUE DATE OF FILING OF THE RETURN OF INCOME. THEREAF TER, THE ISSUE AROSE AS TO WHETHER THE DECISION OF ALOM EXTR USIONS (CITED SUPRA) WAS APPLICABLE ONLY TO THE EMPLOYER'S CONTRIBUTION AND NOT TO THE EMPLOYEES CONTRIBUTION. VARIOUS HIGH COURTS HAVE HELD THAT THE DECISION OF HON'BLE SUPREME COURT IN THE CASE OF ALOM EXTRUSION S (CITED SUPRA) IS APPLICABLE TO BOTH THE EMPLOYER'S AS WELL AS EMPLOYEES' CONTRIBUTION TO P.F. AND ESI. THE RESPECTIVE HIGH COURTS, IN THE FOLLOWING CASES, HAV E HELD THAT THE EMPLOYEES CONTRIBUTION IS ALSO AN ALLOWABL E DEDUCTION, PROVIDED, IT IS PAID BEFORE THE DUE DATE OF FILING OF THE RETURN. (I) CIT VS. SABARI ENTERPRISES (2007) 298 ITR 141 (KAR.). (II) MAGUS CUSTOMERS DIALOG P. LTD., (2015) 371 ITR 242 (KAR.) (III) YUM RESTAURANT INDIA P. LTD., (2015) 371 ITR 139 (DEL.) (IV) CIT VS. NIPSO POLY FABRIKS LTD ., (2013) 350 ITR 327 (HP) (V) CIT VS. NUCHEM LTD ., (2015) 371 ITR 164 (P&H). 4.1. WE FIND THAT THE COORDINATE BENCH OF THIS TRIB UNAL IN THE CASE OF VBC INDUSTRIES LIMITED, HYDERABAD VS. D CIT, CIRCLE-3(3), HYDERABAD IN ITA.NOS.143 & 144/H/2013 ETC., DATED 08.05.2015 AND ALSO IN THE CASE OF M/S. VELJAN DENISON LIMITED, HYDERABAD VS. ADDL. CIT, RANGE-3, HYDERABAD IN ITA.NO.1251/HYD/2015 DATED 16.12.2015, HAS FOLLOWED THE HON'BLE KARNATAKA, RAJASTHAN AND HIMACHAL PRADESH HIGH COURTS TO HOLD THAT THE CONTRIBUTION OF THE EMPLOYEES CONTRIBUTION TO P.F. AND ESI IS ALSO ALLOWABLE IF IT IS PAID BEFORE THE DUE DATE OF FILING OF THE INCOME TAX RETURN. IN THE CASE BEFORE US, WE FIND THAT THE ASSESSEE HAS FILED ITS RETURN OF INCO ME ON 28.09.2012 I.E., BEFORE THE DUE DATE OF FILING OF T HE RETURN OF INCOME WHILE THE PAYMENTS WERE MADE BY 05.01.201 2. THEREFORE, THE ABOVE JUDGMENTS ARE APPLICABLE TO TH E ITA NO 124 OF 2 017DUAL RINGS P LTD SECUNDERABAD PAGE 4 OF 4 FACTS OF THE CASE BEFORE US AND WE DO NOT SEE ANY R EASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A). ACCORDINGLY, REVENUE'S APPEAL IS DISMISSED. 6. I AM ONE OF THE SIGNATORIES TO THE ABOVE ORDER. RESPECTFULLY FOLLOWING THE DECISION OF THE COORDINA TE BENCH, THE APPEAL OF THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH AUGUST, 2017. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 30 TH AUGUST, 2017. VINODAN/SPS COPY TO: 1 SHRI S.RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYA'S E LEGANCE, 3-6- 643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2 INCOME TAX OFFICER WARD 17(1) SIGNATURE TOWERS, K ONDAPUR, HYDERABAD 3 CIT (A)-5 HYDERABAD 4 PR. CIT 5 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER