Crystal Quinone Pvt. Ltd., Ahmedabad V. The Dy. CIT, Circle-1(1)(2), Ahmedabad

ITA 1421/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6014 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 27-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Business income
• Section: 28

Judgement Text

, CKH CKHCKH CKH IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER !# I.T.A. NO. 1421/AHD/2016 ( / ASSESSMENT YEAR : 2012-13) CRYSTAL QUINONE PVT. LTD., OPP. OLD EXCISE CHAWKY, S.M. ROAD, AHMEDABAD - 15 # VS. DCIT, CIRCLE 1(1)(2), AHMEDABAD. $ # % & # PAN/GIR NO. : AABCC 1413 H ( !$' / APPELLANT ) .. ( ($' # RESPONDENT ) !$') # APPELLANT BY : MS. URVASHI SODHAN, A.R. ($'*) / RESPONDENT BY : SHRI MUDIT NAGPAL, SR. D.R. + ,*-. / DATE OF HEARING 27/02/2018 /012*-. / DATE OF PRONOUNCEMENT 28/02/2018 3# O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, AHMEDABAD, VIDE APPEAL NO.CIT(A)-1/DCIT, CIRCLE-1(1)(2)/694/2014-15 DTD. 2 4/02/2016 FOR THE ASSESSMENT YEAR (AY) 2012-13. 2. ASSESSEE HAS TAKEN FOLLOWING GROUNDS OF APPEAL: 1.1 THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING T HE DISALLOWANCE OF RS.4,38,050/- BEING PAYMENT OF ESI CONTRIBUTION AND PF CONTRIBUTION. ITA NO.1421/AHD /2016 CRYSTAL QUINONE PVT. LTD. VS DCIT ASST.YEAR 2012-13 - 2 - 1.2 THE APPELLANT RESPECTFULLY SUBMITS THAT DEDUCTI ONS OF EMPLOYEES CONTRIBUTION TO PF AND ESI HAVE BEEN PAID IN TIME C ONSIDERING DATE OF PAYMENT AS 21 DAYS FROM THE MONTH IN WHICH THE PAYMENT OF SALARY IS MADE. THEREFORE, NO DISALLOWANCE SHOUL D BE MADE. 1.3 WITHOUT PREJUDICE TO THE ABOVE THE APPELLANT RE SPECTFULLY SUBMITS THAT THE PAYMENT OF PF AND ESI IS MADE BEFORE THE D UE DATE OF FURNISHING THE RETURN OF INCOME AND HENCE NO DISALL OWANCE SHOULD BE MADE. 1.4 THE APPELLANT THEREFORE SUBMITS THAT THE DISALL OWANCE OF RS.4,38,050/- BE DELETED. 2. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR T O AMENDED ANY OF THE GROUND OF THE APPEAL BEFORE HEARING OF APPEAL. 3. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERI ALS ON RECORD ARE AS UNDER:- THE ASSESSEE COMPANY CARRIES ON THE BUSINESS OF MA NUFACTURING AND TRADING OF CHEMICALS. DURING THE YEAR UNDER CON SIDERATION, THE ASSESSEE HAS SHOWN TOTAL SALES OF RS.40,99,93,697/- ON WHICH NET PROFIT OF RS.24,98,313/- HAS BEEN DECLARED. ON VERIFICATION O F DETAILS, THE POINTS EMERGED FOR ADDITION/DISALLOWANCES ARE DISCUSSED AS UNDER: 3.1 ADDITION U/S.2(24)(X) ON VERIFICATION OF ANNEXURE-2 AND ANNEXURE-2A OF 3 CD REPORT. IT IS NOTICED THAT THE EMPLOYEES CONTRIBUTION TO PF&ES IC PAID LATE FOR THE FOLLOWING MOTHS: NO. MONTH DUE DATE AMOUNT DATE OF PAYMENT 1. JUNE-2011 21/07/2011 47152 25/07/2011 2. JULY-2011 21/08/2011 46923 25/08/2011 3. AUGUST-2011 21/09/2011 46771 22/09/2011 4. OCTOBER-2011 21/11/2011 46942 22/11/2011 ITA NO.1421/AHD /2016 CRYSTAL QUINONE PVT. LTD. VS DCIT ASST.YEAR 2012-13 - 3 - 5. JAN-2012 21/02/2011 47297 22/02/2011 6. FEB-2012 21/03/2012 47556 22/03/2011 7. MARCH-2012 21/04/2012 49020 16/05/2012 331661 ESIC UNIT - I 1. APRIL-2011 21/05/2011 8776 01/08/2011 2. MAY-2011 21/06/2011 8783 01/08/2011 3. JUNE-2011 21/07/2011 8451 01/08/2011 4. JULY-2011 21/08/2011 8944 27/08/2011 5. AUG-2011 21/09/2011 8917 18/10/2011 6. OCT-2011 21/11/2011 9193 24/11/2011 7. NOV-2011 21/12/2011 8549 22/12/2011 8. DEC-2011 21/01/2012 8738 28/01/2012 9. JAN-2012 21/02/2012 8660 02/03/2012 10 FEB-2012 21/03/2012 8635 22/03/2012 11. MARCH-2012 21/04/2012 8858 23/04/2012 TOTAL 96504 ESI OTHER DEDUCTION 1. APRIL-11 TO MARCH -12 - 9885 17/09/2012 TOTAL 9885 TOTAL [331661+96504+9885]=438050 ON THE BASIS OF ABOVE SAID CHART LD. AR TREATED RS. 4,38,050/- AS ASSESSEES INCOME U/S.2(24)(X) OF THE I.T. ACT. 4. THEREAFTER, ASSESSEE PREFERRED FIRST STATUTORY A PPEAL AGAINST THE ORDER OF LD. ASSESSING OFFICER BUT LD. CIT CONFIRME D THE ACTION OF THE AO. 5. WE HAVE GONE THROUGH THE RELEVANT RECORD AND IMP UGNED ORDER. HONBLE GUJARAT HIGH COURT HELD IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORT CORPORATION IN ITA NO.637 OF 2013 TH AT WITH RESPECT TO ITA NO.1421/AHD /2016 CRYSTAL QUINONE PVT. LTD. VS DCIT ASST.YEAR 2012-13 - 4 - THE SUM RECEIVED BY THE ASSESSEE FROM HIS EMPLOYEE TO WHICH PROVISION OF SUB-CLAUSE (X) OF CLAUSE (24) OF SECTION (2) APP LY, THE ASSESSEE SHALL BE ENTITLED TO DEDUCTION OF SUCH AMOUNT IN COMPUTIN G THE INCOME REFERRED IN SECTION 28 IF SUCH INCOME IS CREDITED BY THE ASS ESSEE TO EMPLOYEES ACCOUNT IN THE RELEVANT FUND OR FUND ON OR BEFORE D UE DATE. 6. SINCE APPELLANT HAS NOT DEPOSITED THE EMPLOYEE C ONTRIBUTION IN THE RELEVANT FUND ON OR BEFORE DUE DATE. THEREFORE, HIS APPEAL CANNOT BE ACCEPTED. 7. IN VIEW OF THE AFORESAID JURISDICTIONAL HIGH COU RT JUDGMENT, WE DISMISS APPEAL OF THE APPELLANT. 8. IN THE RESULT, APPEAL FILED OF THE APPELLANT IS DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 28/02/2018 SD/- SD/- ( ) 4 5 ( N.K. BILLAIYA ) ( MAHAVIR PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 28/02/2018 PRITI YADAV, SR.PS ITA NO.1421/AHD /2016 CRYSTAL QUINONE PVT. LTD. VS DCIT ASST.YEAR 2012-13 - 5 - !'# $#! # COPY OF THE ORDER FORWARDED TO : 1. !$' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 67- + 8- / CONCERNED CIT 4. + 8- 4!5 / THE CIT(A)-1, AHMEDABAD. 5. 9:;-67 !.!672 ! / DR, ITAT, AHMEDABAD 6. ;<=, # GUARD FILE. % & / BY ORDER, (9-- //TRUE COPY// '/& () ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION 27/02/2018 (DICTATION-PAD 1 P AGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 27/02/2018 3. OTHER MEMBER 27/02/2018 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S 28/02/2018 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER