Talent Anywhere Services Pvt. Ltd. , Vadodara V. The Dy.CIT, Circle-2(1)(2), Baroda

ITA 1327/AHD/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7815 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 22-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER TALENT ANYWHERE SERVICES PVT. LTD. 1 ST FLOOR, VADODARA HYPER, DR. VIKRAM SARABHAI MARG, ALAKPURI, VADODARA - 390007 PAN: AAECT1264E (APPELLANT) VS THE DCIT , CIRCLE - 2(1)(1) , BARODA (RESPONDENT) REVEN UE BY : S HRI V.K. SINGH, SR. D . R. ASSESSEE BY: S H RI SANJAY R. SHAH , A.R. DATE OF HEARING : 27 - 06 - 2 018 DATE OF PRO NOUNCEMENT : 10 - 07 - 2 018 / ORDER P ER : AMARJ IT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 201 4 - 1 5 , ARIS ES FROM ORDER OF THE CIT(A) - 2, VADODARA DATED 0 8 - 03 - 201 8 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE ASSESSEE HAS RAISED FOLLOW ING GROUNDS OF APPEAL: - YOUR APPELLANT BEING AGGRIEVED BY THE ORDER DATED 08 MARCH 2018 PASSED BY THE LEARNED COMMISSIONER OF INCOME - TAX (APPELAS) - 2, BARODA ['CIT(A)'] PREFERS AN APPEAL AGAINST THE SAME ON THE FOLLOWING GROUNDS, WHICH ARE WITHOUT PREJUDIC E TO EACH OTHER : 1. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING THE DISALLOWANCE MADE BY THE LEARNED AO OF EMPLOYEES CONTRIBUTION TO PROVIDENT FUND (PF) OF RS. 51,06,031 AND ESIC OF RS. 2,82,708. 1.1 THE LEARNED CIT(A) ERRED I N LAW BY NOT CONSIDERING THE FACT THAT THE AFORESAID CONTRIBUTIONS WERE PAID ON OR BEFORE THE DUE DATE FOR FILING RETURN OF INCOME UNDER SECTION 139(1) OF THE ACT. I T A NO . 1327 / A HD/20 18 A SSESSMENT YEAR 2014 - 15 I.T.A NO. 1327 /AHD/20 18 A.Y. 2014 - 15 PAGE NO TALENT ANYWHERE SERVICES VS. DCIT 2 1.2 THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN NOT CONSIDERING HON'BLE SUPREME COU RT IN CASE OF ALOM EXTRUSIONS LIMITED 319 ITR 306 AND RAJASTHAN HIGH COURT IN CASE OF RAJASTHAN STATE BEVERAGES CORPORATION LIMITED 84 TAXMANN.COM 173, WHICH WERE SQUARELY APPLICABLE IN THE APPELLANT'S CASE. 1.3 THE LEARNED AO ERRED IN DISALLOWING AND LEARNED CIT(A) ERRED IN CONFIRMING ENTIRE AMOUNT OF SUCH DISALLOWANCE INSPITE OF THE FACT THAT THE DUE DATE OF THE PAYMENT OF PF AND ESIC IS TO BE CONSIDERED FROM THE END OF THE MONTH IN WHICH SALARY IS PAID AND NOT FROM THE END OF MONTH FOR WHICH SALARY IS PAID. IN VIEW OF THIS LEGAL POSITION THE ENTIRE DISALLOWANCE NEEDS TO BE REWORKED. IT IS SUBMITTED THAT IT BE SO HELD NOW. 3. BRIEF FACT OF THE CASE IS THAT DURING THE COURSE OF SCRUTINY, THE ASSESSING OFFICER NOTICED THAT ASSESSEE HAS NOT DEPOSITED T HE CONTRIBUTION RECEIVED TOWARDS EMPLOY EE S PROVIDENT FUND AND ESIC IN THE GOVT. ACCOUNT BY THE DUE DATE AS SPECIFIED IN THE RESPECTIVE ACCOUNTS. THE DETAIL S OF SUCH CONTRIBUTION ARE RE PRODUCED AS UNDER: - CONTRIBUTION TOWARDS EPF MONTH EMPLOYEES' CONT RIBUTION TO PF(RS.) DUE DATE ACTUAL DATE OF PAYMENT APRIL 2013 33231 20.05.2013 20.07.2013 MAY 2013 39491 20.06. 2013 20.07.2013 JUNE 2013 39969 20.07.2013 23.08.2013 JULY 2013 39896 20.08. 2013 03.09.2013 AUGUST 2013 4438 6 20.09.20 13 31.01.2014 SEPTEMBER 2013 45458 20.10. 2013 31.01.2014 OCTOBER 2013 45277 20. 11.2013 23.05.2014 NOVEMBER 20 13 47063 20. 12.2013 21.07.2014 DECEMBER 2013 45875 20.01. 2014 23.08.2014 JANUARY 2014 49669 20.02.2014 30.09.20 14 FEBRUARY 2014 51928 20.03.2014 28.11.2014 MARCH 2014 52459 20.04.2014 28.11.2014 APRIL 2013 468531 20.05.2013 13.07.2013 JUNE 2013 450510 20.07.2013 01.08.2013 I.T.A NO. 1327 /AHD/20 18 A.Y. 2014 - 15 PAGE NO TALENT ANYWHERE SERVICES VS. DCIT 3 JULY 2013 408320 20. 08.2013 25.10.2013 AUGUST 2013 462260 20.09.2013 12.10.2013 SEPTEMBER 2013 481655 20.10.2013 06.11.2013 OCTOBER 2013 392192 20.11.2013 29.11.2013 NOVEMBER 2013 389314 20.12.201 3 27.01.2014 DECEMBER 2013 396865 20.01.2013 30.01.2014 JANUARY 2014 344941 20.02.2014 02.03.2014 FEBRUARY 2014 353557 20.03.2014 31.03.2014 MARCH 2014 355409 20.04.2014 27.05.2014 JUNE 2013 67775 20.07.2013 06.11.2013 TO TAL 51,06,031/ - CONTRIBUTION TOWARDS ESIC MONTH EMPLOYEES' CONTRIBUTION TO (RS.) DUE DATE ACTUAL DATE OF PAYMENT JULY 2013 42780 21.08.2013 23.08.2013 AUGUST 2013 52191 21. 09.2013 12. 10.2013 OCTOBER 2013 34693 21.11.2013 11. 01.2014 NOVEMBER 2013 36529 21.12.2013 22.02. 2014 DECEMBER 2013 37617 21.01.2014 23.02.20 14 JANUARY 2014 37662 21.02. 2014 06.03.20 14 MARCH 2014 38103 21.04.2014 19.05.2014 OCTOBER 2013 3133 21.11.2013 23.11.2013 TOTAL 2,82,708 / - CONSEQUENTLY, THE ASSE SSING OFFICER HAS DISALLOWED EMPLOYEES CONTRIBUTION TO PROVIDENT FUND AT RS.51,06,031 AND FSIC AT RS.2,82,708/ - PAID BELATEDLY EVEN I.T.A NO. 1327 /AHD/20 18 A.Y. 2014 - 15 PAGE NO TALENT ANYWHERE SERVICES VS. DCIT 4 AFTER CONSIDERING THE GRACE PERIOD AS PER PROVISION OF SECTION 2(24)( X ) R.W. SECTION 36(I)( V A) OF THE ACT. 4. AGGRIEVED A SSESSEE FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS CONFIRMED THE DISALLOWANCE S AFTER PLACING RELIANCE ON THE DECISION OF JURISDICTIONAL HIGH COURT OF GUJARAT IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORT CORPORATION 265 CTR 65 . 5. WE HA VE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CAREFULLY. WE HAVE NOTICED THAT TH E ASSESSEE HAS NOT DEPOSITED THE CONTRIBUTION RECEIVED FROM THE EMPLOYEES WITHIN THE DUE DATES AS PRESCRIBED UNDER THE PROVIDENT FUND ACT & ESIC . WE CONSI DER THAT THAT HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORT CORPORATION 265 CTR 64 HAS HELD THAT WHEN THE EMPLOYER HAS NOT CREDITED THE SUM RECEIVED BY IT AS EMPLOYEES CONTRIBUTION TO EMPLOYEES ACCOUNT IN RELEVANT FU ND ON OR BEFORE DUE DATE AS PRESCRIBED IN EXPLANATION TO SECTION 36(I)(VA) THE ASSESSEE SHALL NOT BE ENTITLED TO DEDUCTION. IN VIEW OF THE ABOVE FACTS AND THE JUDICIAL FINDINGS, WE UPHOLD THE DECISION OF LD. CIT(A). ACCORDINGLY, THE APPEAL OF THE ASSESSE E IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 10 - 0 7 - 201 8 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTAN T MEMBER AHMEDABAD : DATED 10 /07 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) I.T.A NO. 1327 /AHD/20 18 A.Y. 2014 - 15 PAGE NO TALENT ANYWHERE SERVICES VS. DCIT 5 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,