D.D.Builders Limited, Bhubaneswar V. ACIT,Central Circle-2, Bhubaneswar

ITA 13/CTK/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 3507 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 08-03-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 208; 192; 13

Judgement Text

आयकर अपीऱीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री अरुण खोड़पऩया ऱेखा सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.13/CTK/2021 (नििाारण वषा / Asses s m ent Year :2018-2019) D.D.Builders Ltd., Plot No.36-F, BJB Nagar, Bhubaneswar P AN No. AABCD 1433 E ............ ......As sess ee Versus ACIT, Central Circle-2, Bhubaneswar ....................Revenue Shri Kamal Kumar Agrawalla, CA for the assessee Shri M.K.Gautam, CIT-DR for the Revenue Date of Hearing : 25/08/2022 Date of Pronouncement : 25/08/2022 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A)-2, Bhubaneswar, passed in I.T.Appeal No.0465/19-20, dated 18.01.2021 for the assessment year 2018-2019. 2. It was submitted by the ld. AR of the assessee that the only issue in this appeal was against the action of the ld. CIT(A) in confirming the disallowance of PF & ESI paid by the assessee beyond the due date as prescribed under the respective Acts but before the due date of filing of the return. Ld. AR placed before us a decision of the coordinate bench of the Tribunal in the case of Odyssey Motors Pvt. Ltd., in ITA ITA No.13/CTK/2021 2 No.140/CTK/2021, order dated 17.08.2022, wherein the coordinate bench of the Tribunal has held that if the assessee pays PF & ESI before the due date of filing the return even though the same was beyond the due date as prescribed under the respective Acts, the same is allowable. To support his arguments, ld. AR of the assessee also relied on the following case laws :- i) M/s Essae Teraoka Pvt. Ltd. Vs. DCIT [2014 (3) TMI 386-Kar HC]; ii) CIT Vs. State Bank of Bikaner & Jaipur & Jaipur Vidyut Vitaran Nigam Ltd. [2014(5) TMI 222-Raj HC) dated Jan, 6, 2014; and iii) CIT Vs. M/s Kichha Sugar Company ltd. [2013 (6) TMi 98- Uttarakhand HC. iv) Jagmohan Singh Vs DCIT (ITAT Chandigarh), Appeal Number: ITA Nos. 185 & 193/Chd/2021, Date of Judgement/Order: 15/12/2021 v) Stirred Creative Advertising Pvt. Ltd. Vs DCIT (ITAT Bangalore), Appeal Number : ITA No. 594 & 595/Bang/2021, Date of Judgement/Order : 12/12/2021 vi) Adyar Ananda Bhavan Sweets India P Ltd Vs ACIT (ITAT Chennai), Appeal Number : ITA [2015 – 5/23 402 & 403/CHNY/2021, Date of Judgement/Order : 08/12/2021 vii) Pachouli Wellness Clinic LLP Vs ITO (ITAT Delhi), Appeal Number : ITA No: 999/Del/2021, Date of Judgement/Order : 25/11/2021 viii) Star Facilities Management Limited VS ITO (ITAT Delhi), Appeal Number : ITA No. 1755/Del/2020, Date of Judgement/Order : 01/11/2021 ix) Lumino Industries Ltd. Vs. ACIT, ITA Nos.231&365/Kol/2021, order dated 17/11/2021; x) Mavinahalli Shivananjappa Vijay Kumar Vs. DCIT, ITA Nos.596&597/Bang/2021, order dated 13/12/2021; xi) Shri Prakash Pai Kochikar Vs. ADIT, ITA No.479/Bang/2021, order dated 09/12/2021; xii) Eskay heat Transfers Pvt. Ltd. Vs. ADIT, ITA No.534/Bang/2021, order dated 07/12/2021; xiii) Anand Sweets and Savouries Vs. DCIT, ITA No.530/Bang/2021, order dated 06/12/2021; xiv) Transzone Logistics (India) Pvt. Ltd. Vs. DCIT, ITA No.1740/Del/2020, order dated 29/10/2021; xv) Jai Enterprises Vs. DCIT, ITA No.248/JP/2021, order dated 25/11/2021; xvi) Nayrathan Jewellers Pvt. Ltd. Vs. ADIT, ITA No.470/Bang/2021, order dated 23/11/2021; ITA No.13/CTK/2021 3 xvii) Abhimanyu Sharma Vs. ITO, ITA No.175/JP/2021, order dated 23/11/2021; xviii) Nikhil Mohine Vs. DCIT, ITA No.37&38/Jab/2021, order dated 18/11/2021; xix) DCIT Vs. Kesoram Industries Ltd., ITA No.1777/Kol/2019, order dated 28/10/2021; xx) Suba Singh Vs. ITO, ITA No.85/ASR/2021, order dated 10/11/2021; xxi) Citi Centre Developers Vs. CPC, ITA No.126/Chd/2021, order dated 28/11/2021; xxii) Pee Tee Turners Vs. ADCPC, ITA No.105/JP/2021, order dated 28/11/2021; xxiii) Amandeep Singh Khurana Vs. ITO, ITA No.1822/Del/2020, order dated 27/10/2021; xxiv) Aroon Facilitation Management Services Pvt. Vs. DCIT, ITA No.1824/Del/2020, order dated 13/10/2021; xxv) Worldwide Facility Management Services Pvt. Ltd.Vs. DCIT, ITA No.1823/Del/2020, order dated 13/10/2021; xxvi) Rukmini Polytubes Pvt. Ltd. Vs. DCIT, ITA No.1855/Del/2020, order dated 13/10/2021; xxvii) Adama Solution P. Ltd. Vs. ADIT, ITA No.1800/Del/2020, order dated 13/10/2021; xxviii) Vansh Jain Vs. DCIT, ITA No.1853/Del/2020, order dated 13/10/2021; xxix) Express Roadway P. Ltd. Vs. ACIT, ITA No.5570/Del/2017, order dated 11/10/2021; xxx) Ridhi Sidhi Mills (India) Pvt. Ltd. Vs. DCIT, ITA Nos.71&72/Jodh/2021, order dated 28/09/2021; xxxi) Chodavaram Vs. ADIT, ITA No.25&28/VIZ/2021, order dated 23/09/2021; xxxii) S.V.Engineering Constructions India (P) Ltd. Vs. DCIT, ITA No.130/VIZ/2021, order dated 23/09/2021. 3. In reply, the ld. CIT-DR submitted that PF & ESI has been paid beyond the due date as prescribed under the respective Acts, even if paid within the due date of filing of the return constituted income u/s.36(1)(va) r.w.s.2(24)(x) of the Act. To support his arguments, ld. CIT-DR relied on the following case laws :- i) Unifac Management Services (India)(P.) Ltd. Vs. DCIT, [2018] 100 taxmann.com 244 (Madras); ii) CIT Vs. Gujarat State Road Transport Corporation [2014] 41 taxmann.com 100 (Gujarat); iii) CIT Vs. Merchem Limited, (2015) 378 ITR 443 (Kerala); ITA No.13/CTK/2021 4 iv) Pr.CIT Vs. M/s Suzlon Energy Ltd., (2020) 423 ITR 608 (Guj); v) CIT Vs. Bharat Hotels Ltd., (2019) 410 ITR 0417 (Delhi), vi) Popular Vehicles & Services (P.) Ltd., [2018] 96 taxmann.com 13 (Kerala); vii) South India Corporation Ltd., [2015] 58 taxmann.com 208 (Kerala); viii) Vedvan Consultants Pvt. Ltd., ITA No.1312/Del/2020, order dated 26.08.2021. 4. We have considered rival submissions. There are plethora of decisions on this issue for both the sides. However, in view of the decision of the Hon’ble Supreme Court in the case of CIT Vs. Vegetable Products Ltd., reported in [1973] 88 ITR 192 (SC), when we are faced with decisions which are both for and against the assessee, then in the interest of justice, decisions in favour of the assessee should be followed. This coordinate bench of the Tribunal in the case of Odyssey Motors Pvt. Ltd. in ITA No.140/CTK/2021, vide order dated 17.08.2022, has held the issue in favour of the assessee. As the coordinate bench of the Tribunal has been continuously holding this issue in favour of the assessee by following various High Court decisions, respectfully following the principles laid down in the decision of the Hon’ble Supreme Court in the case of Vegetable Products and the decision of the Tribunal in the case of Odyssey Motors Pvt. Ltd. (supra), we decide the issue in favour of the assessee. Consequently, the order of the CIT(A) is set aside and the AO is directed to allow the assessee’s claim of deduction of employees contribution to PF & ESI paid beyond the due date under the respective Act but before the filing of the return. ITA No.13/CTK/2021 5 5. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 25/08/2022. Sd/- (अरुण खोड़पऩया) (ARUN KHODPIA) Sd/- (जाजज माथन) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 25/08/2022 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : आदेशाि ु सार/ BY ORDER, (Assistant Registrar) आयकर अपीऱीय अधिकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- D.D.Builders Ltd., Plot No.36-F, BJB Nagar, Bhubaneswar 2. प्रत्यथी / The Respondent- ACIT, Central Circle-2, Bhubaneswar 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. पिभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यापऩत प्रयत //True Copy//