Income Tax Officer Ward-1(1)(3), Bangalore V. M/s Bangalore Airport Terminal Services Private Limited , Bangalore

ITA 1587/BANG/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9821 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 14-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R N SIDDAPPAJI CIT HEARD ON PR
• Section: 43B; 13; 2

Judgement Text

ITA.1587/BANG/2018 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'B', BENGALURU BEFORE SHRI. A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER I.T.A NO.1587/BANG/2018 (ASSESSMENT YEAR : 2014-15) INCOME-TAX OFFICER, WARD -1(1)(3), BENGALURU .. APPELLANT V. M/S. BANGALORE AIRPORT TERMINAL SERVICES P. LTD, NO.148, HBR LAYOUT, 5 TH CROSS, BENGALURU 560 043 .. RESPONDENT PAN : AACCB8858Q ASSESSEE BY : NONE REVENUE BY : SHRI. R. N. SIDDAPPAJI, ADDL. CIT HEARD ON : 28.11.2018 PRONOUNCED ON : 13.12.2018 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : THE PRESENT APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT (A)-1, BENGALURU, DT.NIL, FOR THE ASSESS MENT YEAR 2014- 15, ON THE FOLLOWING EFFECTIVE GROUND : 2. THE LD. CIT (A) ERRED IN DELETING THE ADDITION O F RS.87,76,028/- MADE BY THE ASSESSING OFFICER ON ACC OUNT OF DELAYED PAYMENT OF EMPLOYEES CONTRIBUTION TO PF AND ESI UNDER SECTION 43B AND 2 (24) READ WITH SECTION 36(1 )(VA). ITA.1587/BANG/2018 PAGE - 2 02. THE ASSESSEE COMPANY IS ENGAGED IN PROVIDING TE RMINAL SERVICES AT KEMPEGOWDA INTERNATIONAL AIRPORT, BENGA LURU AND OTHER AIRPORTS. THE ASSESSEE FILED THE RETURN OF INCOME FOR AY 2014-15, DECLARING LOSS OF RS.53,48,452/-. THE CASE WAS SEL ECTED FOR SCRUTINY AND NOTICE U/S.143(2) WAS ISSUED. DURING THE COURS E OF ASSESSMENT, THE AO NOTICED THAT THE REMITTANCES IN RESPECT OF E PF, ESI AND OTHER WELFARE FUNDS WERE PAID BEYOND THE DUE DATE. THERE FORE THESE PAYMENTS WERE TREATED AS INCOME AND BROUGHT TO TAX. BEING AGGRIEVED, THE ASSESSEE WENT IN APPEAL BEFORE THE C IT (A). 03. BEFORE THE CIT (A), THE ASSESSEE SUBMITTED THAT OUT OF THE TOTAL AMOUNT OF RS.87,76,028/- DISALLOWED BY THE AO , AN AMOUNT OF RS.82,81,910/- HAD BEEN PAID BEFORE THE DUE DATE FO R FILING THE RETURN OF INCOME AND HENCE THE DISALLOWANCE MAY BE DELETED. HOWEVER THE CIT (A) BY RELYING ON THE JUDICIAL PREC EDENTS OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE MATTER OF ESSAE TERAOKA LTD V. DCIT [366 ITR 408] AND CIT V. SABARI ENTERPR ISES [298 ITR 141], ALLOWED THE SAID EXPENDITURE TO THE EXTENT IT WAS DEPOSITED BEFORE THE DUE DATE FOR FILING THE RETURN OF INCOME . NOW THE REVENUE IS AGGRIEVED AND IS IN APPEAL BEFORE THIS T RIBUNAL. 04. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. FROM A PERUSAL OF THE JUDGMENT OF THE H ONBLE JURISDICTIONAL HIGH COURT IN ESSAE TERAOKA LTD (SUP RA), WHICH FOLLOWED THE JUDGMENT OF THE HONBLE SUPREME COURT, WE DO NOT FIND ANY MERIT IN THE APPEAL FILED BY THE REVENUE. WE MAY POINT OUT THAT THE JUDGMENT RELIED UPON BY THE REVENUE OF THE HONBLE KERALA HIGH COURT IN POPULAR VEHICLES & SERVICES P. LTD V. CIT ITA.1587/BANG/2018 PAGE - 3 [(2018) 96 TAXMANN.COM 13], IS ONLY HAVING THE PERS UASIVE VALUE, FOR THE TRIBUNAL SITUATED WITHIN THE JURISDICTION O F THE HONBLE KARNATAKA HIGH COURT AS TRIBUNAL IS BOUND TO FOLLOW THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT, AS PER THE JUDICI AL DISCIPLINE . HENCE, FOLLOWING THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT IN ESSAE TERAOKA LTD (SUPRA), WE UPHOLD THE ORDER OF T HE CIT (A). 05. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH DAY OF DECEMBER, 2018. SD/- SD/- (A. K. GARODIA) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBE R BENGALURU DATED : 13.12.2018 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.