M/S RAJASHREE SUGARS AND CHEMICALS LTD, COIMBATORE V. DCIT CORPORATE CIRCLE 2 , COIMBATORE

ITA 1708/CHNY/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 7144 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 17-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

आयकर अपीलीय अिधकरण, ‘सी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI Įी महावीर ͧसंह, उपाÚय¢ एवं डॉ एम एल मीना, लेखा सदèय के सम¢ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND Dr. M.L. MEENA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 1708/CHNY/2018 िनधाᭅरण वषᭅ /Assessment Year: 2013-14 M/s. Rajshree Sugars & Chemicas Ltd., “The Uffizi”, 338, Avinashi Road, Peelamedu, Coimbatore – 641 004. PAN: AABCR 4179D v. The DCIT, Corporate Circle – 2, Coimbatore. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri R. Vijayaraghavan, Advocate & Shri Saroj Kumar Parida, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri D. Songate, CIT स ु नवाई कȧ तारȣख/Date of Hearing : 09.03.2022 घोषणा कȧ तारȣख/Date of Pronouncement : 10.03.2022 आदेश /O R D E R PER BENCH: This appeal by the assessee is arising out of the revision order passed by Learned Principal Commissioner of Income Tax -1, Chennai in C.No.120(20)/263/PCIT-1/CBE/2017-18 dated 23.03.2018 for the assessment year 2013-14. The assessment was framed by the DCIT, Corporate Circle 2, Coimbatore for the assessment year 2013-14 u/s. 2 I.T.A. No.1708/Chny/2018 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’) vide order dated 03.03.2016 2. At the outset, the ld.counsel for the assessee stated that the PCIT while revising the assessment and passing revision order u/s.263 of the Act directed the AO to disallow the claim of ESI & PF paid beyond due date as prescribed under the respective Acts and in term of provision of section 36(1)(va) r.w.s. 2(24)(x) of the Act. The PCIT relied on Circular No.22/2015 issued by CBDT which expressly states that deduction in respect of any sum received by the assessee from employees, which are governed by section 36(1)(va) are allowable only if it is paid in the relevant fund before the due date. The ld.counsel for the assessee stated that this issue is squarely covered by the decision of Hon’ble Jurisdictional High Court in the case of M/s. Industrial Security and Intelligence India P Ltd., TCA Nos. 585 & 586 of 2015, order dated 24.07.2015 and hence, revision u/s.263 of the Act is bad and illegal. The ld.CIT-DR could not controvert the above stated factual situation. As the issue is squarely covered by the decision of Hon’ble High Court of Madras in the case of M/s. Industrial Security and Intelligence India P Ltd., supra and in the present case, assessee admittedly made payment of employees contribution of PF & ESI within the due date of filing of return of income of the assessee u/s.139(1) of 3 I.T.A. No.1708/Chny/2018 the Act, we quash the revision order and allow the appeal of the assessee. 3. In the result, the appeal filed by the assessee is allowed. Order pronounced in the court on 10 th March, 2022 at Chennai. Sd/- (डॉ एम एल मीना) (Dr. M.L. MEENA) लेखा सद᭭य /ACCOUNTANT MEMBER Sd/- (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 10 th March, 2022 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ (अपील)/CIT(A) 4. आयकर आयुᲦ /CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF.