ITO, Ward - 10(4), Kolkata, Kolkata V. M/s. S. Chatterjee & Sons (I) Pvt. Ltd., Kolkata

ITA 159/KOL/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 7958 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2010
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 25-01-2010
• Court: TRIBUNAL
• Department Lawyers: R K PAL
• Assessee Lawyers: R N DHAR
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : C BENCH: K OLKATA (BEFORE HON.SMT. DIVA SINGH, JM & HON. SHR I B.K.HALDAR,AM) ITA NO.159/KOL/10 A.Y 2005-06 INCOME-TAX OFFICER VS. M/S. S.CHATTERJEE & SONS (I) WARD 10(4), KOLKATA PVT. LTD. PAN:AAACS-2755C (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI R.K.PAL RESPONDENT BY: SHRI R.N.DHAR ORDER PER SHRI B.K.HALDAR, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A), XII, KOLKATA DATED 30-11-2009 ON AN ORDER PASSED BY THE AO U/S.154 OF THE I.T.ACT61. 2. REVENUE HAS TAKEN FOLLOWING GROUND OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, LD.CIT(A) HAS ERRED IN DELETING THE ADDITION MADE FOR DEPOSITING EMPLOYEES CONTRIBUTION TO PROVIDENT FUND BEYOND DUE DATE WHICH IS NOT PERMISSIBLE AS PER PROVISION OF SEC.36(1)(VA) READ WITH SEC.2(24)(X) OF THE I.T.ACT. 3. IN THIS CASE THE RETURN WAS PROCESSED U/S.143(1 ) OF THE I.T.ACT ON 16/12/05. SUBSEQUENTLY, AS PER THE ORDER PASSED U/ S.154 OF THE ACT DATED 08/07/2008 THE A.O DISALLOWED THE EMPLOYEES CONTR IBUTION TO PF AMOUNTING TO RS.7,29,656/- U/S 36(1)(VA) R.W.S 2(24)(X) OF TH E I.T.ACT61. 4. AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE THE L D.CIT(A). 5. BEFORE THE LD.CIT(A) IT WAS CONTENDED BY THE ASS ESSEE THAT THE IMPUGNED AMOUNT WAS PAID BEFORE DUE DATE OF FILING OF RETURN AND THEREFORE, THE SAME COULD NOT BE DISALLOWED. THE LD.CIT(A) ACCEPTED THE ABOVE CONTENTION OF THE ASSESSEE RELYING ON THE FOLLOWING CASE LAWS:- A. CIT VS. VINAY CEMENTS LTD 213 CTR 268(SC) B. CIT VS. SABARI ENTERPRISES 298 ITR 141(KAR) C. CIT VS. M.N. CHARI 310 ITR 445(KAR) 2 6. AGGRIEVED THE REVENUE HAS FILED APPEAL BEFORE US . 7. BEFORE US THE LD.DR HAS RELIED ON THE ORDER OF T HE A.O, WHEREAS THE LD.AR FOR THE ASSESSEE HAS RELIED ON THE ORDER OF THE LD. CIT(A). 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORD. IT IS NOT DISPUTED BY THE REVENUE THAT IN THIS CASE ONLY PROCESSING U/S.143(1) OF THE ACT WAS DONE. SECTION 143(1) DOES NOT ALLOW THE AO TO MAKE ANY ADJUSTMENT IN THE NATURE OF DISALLOWANCE MADE IN THE PRESENT CASE. T HUS, THERE WAS NO MISTAKE IN THE ORDER PASSED U/S.143(1), WHICH COULD BE DISALLO WED U/S.154 OF THE ACT. EVEN OTHERWISE, THE ISSUE OF DISALLOWANCE OF IMPUGNED EX PENDITURE IS A DEBATABLE ISSUE. THUS, SECTION 154 CANNOT BE BROUGHT INTO F OR MAKING SUCH DISALLOWANCE. IN THIS VIEW OF THE MATTER, WE FIND NO INFIRMITY ON THE FINDINGS OF THE LD.CIT(A) AND CONFIRM THE SAME. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED ON 26 -3-10. SD/- SD/- ( DIVA SINGH) (B.K.HALDAR ) JUDICIAL MEMBER DT.26-3-10 ACCOUNTANT MEMBER COPY FORWARDED TO :- 1. ITO W 10(4) P-7 CHOWRINGHEE SQ., KOL-69. 2. M/S. S.CHATTERJEE & SONS (I) PVT. LTD 33 C.R AVENUE , 2 ND FL., KOL-12 3. CIT(A)-XII, KOLKATA 4. CIT(WB) 5. D.R., ITAT, KOLKATA. *PP TRUE COPY BY ORDER DEPUTY REGISTRAR, ITAT, KOLKATA 3