ACIT, New Delhi V. M/s. SQL Star International Ltd., New Delhi

ITA 1327/DEL/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3828 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2005-2006
• Appeal Filed On: 26-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KISHORE B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G : NEW DELHI BEFORE SHRI R.P.TOLANI AND SHRI K.D.RANJAN ITA NO.1327/DEL/2010 ASSESSMENT YEAR : 2005-06 ACIT, CIRCLE 9(1), NEW DELHI. VS. M/S SQL STAR INTERNATIONAL LTD. 3 RD FLOOR, ANDHRA ASSOCIATION BUILDING, 24-25, INSTITUTIONAL AREA, LODHI ROAD, NEW DELHI. PAN AAACS0372C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI KISHORE B., SR. D.R. RESPONDENT BY : NONE ORDER PER K.D.RANJAN, AM: THIS APPEAL BY THE REVENUE FOR ASSESSMENT YEAR 2005 -06 ARISES OUT OF ORDER OF LD. CIT(A)-XII, NEW DELHI. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE REPRODUCED AS UNDER: 1. LD. COMMISSIONER OF INCOME TAX(APPEALS) ERRED, I N LAW AND ON THE FACTS AND CIRCUMSTANCES OF THE CASE, IN DELE TING THE ADDITION OF RS.16,34,473/- MADE BY THE A.O. ON ACCO UNT OF LATE PAYMENT OF EMPLOYEES CONTRIBUTION TOWARDS PF & ESI . 2. THE APPELLANT CRAVES TO AMEND MODIFY, ALTER, ADD OR FOREGO ANY GROUND OF APPEAL AT ANY TIME BEFORE OR DURING THE H EARING OF THIS APPEAL. 2. THE ONLY ISSUE FOR CONSIDERATION RELATES TO DELE TING THE ADDITION OF RS.16,34,473/- MADE BY ASSESSING OFFICER ON ACCOUNT OF LATE PAYMENT OF 2 EMPLOYEES CONTRIBUTION TOWARDS PF & ESI WITHIN THE DUE DATE AS PRESCRIBED IN THE RELEVANT ACT. THE ASSESSING OFFICER, THEREFO RE, TREATED THE AMOUNT OF RS. 16,34,473/- AS INCOME OF THE ASSESSEE U/S 36(1) (VA) READ WITH SEC. 2(24)(X) OF THE I.T.ACT,1961. 3. ON APPEAL, IT WAS SUBMITTED THAT THE PAYMENTS WE RE MADE BEFORE FILING THE RETURN OF INCOME AND, THEREFORE, NO DISALLOWANC E COULD BE MADE. THE ASSESSEE PLACED RELIANCE ON SEVERAL DECISIONS INCLU DING THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF P.M.ELECTRO NICS LTD. 220 CTR 635. THE LD. CIT(A) WHILE DECIDING THE ISSUE NOTED THAT PAYMENT OF EACH MONTH HAD BEEN VERIFIED AND THE CLAIM OF ASSESSEE WAS FOU ND TO BE CORRECT. SHE ACCORDINGLY DELETED THE ADDITION. 4. BEFORE US, NONE ATTENDED ON BEHALF OF THE ASSESS EE. SINCE THE ISSUE IS COVERED BY THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF P.M.ELECTRONICS LTD. (SUPRA), THE ISSUE IS DECIDED AFTER HEARING THE LD. SR. D.R. 5. WE HAVE HEARD THE LD. SR. D.R. AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. THE ASSESSING OFFICER DISALLOW ED THE AMOUNT OF RS.16,34,473/- ON THE GROUND THAT PAYMENT WAS NOT M ADE WITHIN THE DUE DATE. HOWEVER, ON APPEAL, THE LD. CIT(A) VERIFIED T HE DETAILS AND HAS RECORDED A FINDING THAT PAYMENT WAS MADE BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME. WE FIND THAT THIS ISSUE IS COVERE D BY THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF CIT V. P.M. ELECTRONICS LTD. (SUPRA) WHEREIN IT HAS BEEN HELD THAT WHERE PAYMENT ON ACCO UNT OF EMPLOYEES/EMPLOYERS CONTRIBUTION TOWARDS PF & ESI ARE MADE BEFORE THE DUE DATE OF FILING OF THE RETURN, NO ADDITION/DISAL LOWANCE CAN BE MADE. 3 RESPECTFULLY, FOLLOWING THE DECISION OF HON'BLE DEL HI HIGH COURT IN THE CASE OF CIT VS. P.M.ELECTRONICS LTD. (SUPRA), WE DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. ACCORDINGLY, WE D O NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A) DELETING THE ADDITION. 6. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CLOSE OF THE HEARING ON 26/5/2010 SD/- SD/- ( R.P.TOLANI) (KD.RANJAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 26.05.2010. PSP COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR