M/s. Raajratna Metal Industries Ltd., Ahmedabad V. The Deputy Commissioner of Income Tax, Circle-3(1)(2), Ahmedabad

ITA 1268/AHD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8552 (ITAT-AHMEDABAD)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2012-2013
• Appeal Filed On: 24-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH SINGH
• Assessee Lawyers: P D SHAH
• Section: 143(3); 28

Judgement Text

IT(TP)A NO. 1268/AHD /2017 RAAJRATNA METAL INDUSTRIES LTD VS. DCIT ASSESSMENT YEAR: 2012-13 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND RAJPAL YADAV JM] IT(TP)A NO. 1268/AHD/2017 ASSESSMENT YEAR: 2012-13 RAAJRATNA METAL INDUSTRIES LIMITED ............ ......APPELLANT C/O. MEHTA LODHA &CO., CHARTERED ACCOUNTANTS 105, SAKAR-I, ASHRAM ROAD AHMEDABAD - 380009 [PAN : AAACR 9980 M] VS. DY. COMMISSIONER OF INCOME-TAX ...........................RESPONDENT CIRCLE 3(1)(2) AHMEDABAD APPEARANCES BY: PD SHAH FOR THE APPELLANT SAURABH SINGH FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 15.03.2018 DATE OF PRONOUNCING THE ORDER : 05.04.2018 O R D E R PER BENCH : 1. BY WAY OF THIS APPEAL, THE ASSESSEE-APPELLANT HA S CHALLENGED CORRECTNESS OF THE ORDER DATED 3 RD MARCH, 2017 PASSED BY THE BY THE CIT(A)-9, AHMEDAB AD, IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) R.W.S. 14 4C OF THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2012-13. 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT T HE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCE OF RS.26,10,704/-, WHIC H WAS ADDED BY THE ASSESSING OFFICER WITH THE AID OF SECTION 36(1)(VA) R.W.S. 2( 24)(X) OF THE INCOME-TAX ACT, 1961, FOR THE LATE PAYMENT OF EMPLOYEES CONTRIBUTION TO P F/ESI. 3. LEARNED REPRESENTATIVES FAIRLY AGREE THAT THE A FORESAID ISSUE IS SQUARELY COVERED AGAINST THE ASSESSEE BY HONBLE JURISDICTIO NAL HIGH COURTS JUDGMENT IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORT CORPOR ATION, 366 ITR 170 (GUJ.), WHEREIN IT IS CATEGORICALLY HELD THAT IN THE CASE O F DELAYED DEPOSIT OF EMPLOYEES CONTRIBUTION TO PF/ESI, THE SAME WILL NOT BE DEDUCT ABLE IN COMPUTING INCOME UNDER SECTION 28 OF THE ACT. THE LAW SO LAID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT IS BINDING ON US. THE MERE FACT THAT AN APPEAL AGAINS T THE SAID DECISION IS PENDING BEFORE THE HONBLE SUPREME COURT DOES NOT DILUTE BI NDING NATURE OF THIS JUDICIAL PRECEDENT. AS REGARD DISMISSAL OF SLP IN THE CASE OF RAJASTHAN STATE BEVERAGES CORPORATION LTD (SUPRA), IT IS ONLY ELEMENTARY THAT WHEN A SLP IS DISMISSED BY A NON- IT(TP)A NO. 1268/AHD /2017 RAAJRATNA METAL INDUSTRIES LTD VS. DCIT ASSESSMENT YEAR: 2012-13 PAGE 2 OF 2 SPEAKING ORDER, IT DOES NOT CONSTITUTE A LAW DECLAR ED BY HONBLE SUPREME COURT, AND AS SUCH, IT IS NOT BINDING UNDER ARTICLE 141 OF THE CONSTITUTION OF INDIA. THE AUTHORITY, FOR THIS PROPOSITION, IS CONTAINED IN A SERIES OF J UDGMENTS OF HONBLE SUPREME COURT, INCLUDING, INTER ALIA, IN THE CASES OF STATE OF MAN IPUR VS. THINGUJAMBROJENMEETAI, (1996) 9 SCC 29; OM PRAKASH GARGI V. STATE OF PUNJA B, (1996) 11 SCC 399 AND SUN EXPORT CORPN V. COLLECTOR OF CUSTOMS, AIR 1997 SC 2658. WE, THEREFORE, SEE NO LEGALLY SUSTAINABLE MERIT IN THE CASE OF THE ASS ESSEE AND, RESPECTFULLY FOLLOWING THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT I N THE CASE OF GUJARAT STATE ROAD TRANSPORT CORPORATION (SUPRA), DISMISS THE GRIEVANC E OF THE ASSESSEE. 4. LEARNED COUNSEL HAS, HOWEVER, FILED A DETAILED C HART TO JUSTIFY HIS CONTENTION THAT A LARGE NUMBER OF PAYMENTS SO MADE ARE WELL WI THIN THE PERMISSIBLE TIME LIMIT, AND YET THESE PAYMENTS ARE DISALLOWED ON THE GROUND THAT THESE PAYMENTS ARE DELAYED PAYMENTS. SINCE THIS ASPECT OF THE MATTER HAS NOT BEEN RAISED BEFORE ANY OF THE AUTHORITIES BELOW, WE DEEM IT FIT AND PROPER TO REMIT THE MATTER TO THE FILE OF THE CIT(A) FOR LIMITED VERIFICATION OF THIS PLEA. IF T HE PAYMENTS ARE INDEED MADE IN TIME, TO THAT LIMITED EXTENT, DISALLOWANCE WILL HAVE TO B E DELETED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES IN THE TERMS INDICATED ABOVE. PRONOUNCED IN THE OPEN COUR T TODAY ON THE 5 TH APRIL, 2018 SD/- SD/- RAJPAL YADAV PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 5 TH DAY OF APRIL, 2018 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ................COVERED MATT ER...04.04.2018... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: ....... 04.04.2018.......... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: ..04.04.2018..... . 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: .... 05.04.2018... 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .. 05.04.2018.... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : 8. DATE OF DESPATCH OF THE ORDER: ......