Bafna Auto Cars India Pvt. Ltd., Pune V. Assistant Commissioner of Income-tax,

ITA 137/PUN/2014

• Counselvise Citation: 13724514 RSA 2014
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 21-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NILESH KHANDELWAL
• Section: 43B; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.137/PN/2014 (ASSESSMENT YEAR: 2007-08) BAFNA AUTO CARS INDIA PVT. LTD., C/O MZSK & ASSOCIATES, CHARTERED ACCOUNTANTS, LEVEL 3, BUSINESS BAY, PLOT NO.84, WELLESLEY ROAD, NEAR RTO, PUNE 411001 PAN: AABCB2227N . APPELLANT VS. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1(1), PUNE . RESPONDENT APPELLANT BY : SHRI NILESH KHANDELWAL RESPONDENT BY : SHRI RAVI PRAKASH DATE OF HEARING : 05-01-2015 DATE OF PRONOUNCEMENT : 12-01-2015 ORDER PER SUSHMA CHOWLA, JM: THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF CIT(A)-I, PUNE DATED 31.12.2013 RELATING TO ASSESSMENT YEAR 2007- 08 AGAINST ORDER PASSED UNDER SECTION 143(3) OF THE INCOME-TAX ACT. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. ON FACTS AND CIRCUMSTANCES PREVAILING IN THE CASE A ND AS PER PROVISIONS & SCHEME OF THE ACT IT BE HELD THAT THE AD DITION OF RS.1,54,673/- MADE BY THE AO AND THAT CONFIRMED BY THE 1 ST APPELLATE AUTHORITY FOR LATE PAYMENT OF P.F. AND ESIC IS IMPROPER, UNJUSTIFIED, AND CONTRARY TO THE FACTS PREVAILING IN THE CASE AND PROVISIONS OF LAW. IT FURTHER BE HELD THAT NO DISALLOWA NCE MADE BY THE AO AND CONFIRMED BY THE 1 ST APPELLATE AUTHORITY IS WARRANTED OR JUSTIFIED. THE ADDITION MADE BY THE AO AND THAT CONFIRMED BY THE 1 ST APPELLATE AUTHORITY BE DELETED. THE APPELLANT BE GRANTED JUST AND PROPER RELIEF AS PER PROVISIONS OF LAW AND FACTS PREVAILING IN THE CASE. 2. APPELLANT PRAYS TO BE ALLOWED TO ADD, AMEND, MODIFY, RECT IFY, DELETE, RAISE ANY GROUNDS OF APPEAL AT THE TIME OF HEARING. ITA NO.137/PN/2014 BAFNA AUTO CARS INDIA PVT. LTD. 2 3. THE ONLY ISSUE IN THE PRESENT APPEAL IS AGAINST THE ADDITION MADE ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PF AND E SIC AMOUNTING TO RS.1,54,673/-. 4. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSES SEE POINTED OUT THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY THE RATIO LAID DOWN BY HONBLE BOMBAY HIGH COURT IN CIT VS. GHATGE PAT IL TRANSPORTS LTD. IN IT APPEAL NOS.1002 & 1034 OF 2012, VID E ORDER DATED 14.10.2014. 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVE NUE HAS PLACED RELIANCE ON THE ORDERS OF AUTHORITIES BELOW. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION HAD D ELAYED IN MAKING PAYMENT TOWARDS EMPLOYEES CONTRIBUTION TO PF AN D ESIC AS DETAILED AT PAGE 2 OF THE ASSESSMENT ORDER. THE PERUSA L OF THE SAID DETAILS REFLECTS THAT THE SAID PAYMENTS WERE MADE BY THE ASSESSEE BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME. THE ISSU E ARISING IN THE PRESENT APPEAL IS IN RELATION TO THE ADDITION MADE ON ACCOUNT OF SUCH AMOUNTS BEING NOT PAID WITHIN THE DUE DATES PROVIDE D UNDER THE RESPECTIVE ACTS OF THE PF AND ESIC. 7. WE FIND THAT THE ISSUE OF EMPLOYEES CONTRIBUTION TO PF AND ESIC BEING PAID BELATEDLY BUT BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME, AROSE BEFORE THE HONBLE BOMBAY HIGH COURT IN CI T VS. GHATGE PATIL TRANSPORTS LTD. (SUPRA) WHEREIN, IT HAS BEEN HELD THAT NO ADDITION IS TO BE MADE IN VIEW OF THE PROVISIONS OF SECTION 43B OF THE ACT ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PF AND ESI C, WHERE THE SAME IS DEPOSITED BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME. IN THIS REGARD, RELIANCE WAS PLACED BY THE HONBLE BOMBAY HIG H COURT ON ITA NO.137/PN/2014 BAFNA AUTO CARS INDIA PVT. LTD. 3 THE RATIO LAID DOWN BY HONBLE SUPREME COURT IN CIT VS. A LOM EXTRUSIONS LTD. REPORTED IN (2009) 319 ITR 306 (SC) AND ON THE JUDGMENT OF HONBLE PUNJAB & HARYANA HIGH COURT IN CIT VS. LAKHANI RUBBER WORKS REPORTED IN (2010) 326 ITR 415 (P&H). 8. THE ISSUE ARISING IN THE PRESENT APPEAL IS IDENTICAL TO THE ISSUE BEFORE THE HONBLE BOMBAY HIGH COURT IN CIT VS. GHATGE PATIL TRANSPORTS LTD. (SUPRA) AND FOLLOWING THE SAME PARITY OF R EASONING, WE HOLD THAT THE ASSESSEE IS ENTITLED TO THE CLAIM OF DEDUCTIO N ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PF AND ESIC, WHERE THE SA ID AMOUNTS HAVE THOUGH BEEN PAID BELATEDLY, BUT BEFORE THE DUE DAT E OF FILING THE RETURN OF INCOME. THE ASSESSING OFFICER IS THUS, DIRECTED TO DELETE THE ADDITION MADE ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PF AND ESIC AS IT IS EVIDENT FROM THE PERUSAL OF THE ASSESSMENT ORDER THAT THE ASSESSEE HAS DEPOSITED THE SAID AMOUNTS BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME. ACCORDINGLY, THE GROUND OF APPEAL NO.1 RAISED B Y THE ASSESSEE IS THUS, ALLOWED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 12 TH DAY OF JANUARY, 2015. SD/- SD/- (R.K. PANDA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED: 12 TH JANUARY, 2015. GCVSR COPY OF THE ORDER IS FORWARDED TO : - 1) THE ASSESSEE; 2) THE DEPARTMENT; 3) THE CIT(A)-I, PUNE; 4) THE CIT-I, PUNE; 5) THE DR A BENCH, I.T.A.T., PUNE; 6) GUARD FILE. BY ORDER //TRUE COPY// ASSISTANT REGISTRAR I.T.A.T., PUNE