Shambhu Textile Mills Pvt. Ltd., Ahmedabad V. The Dy. Commissioner of Income Tax, Ward-4(1)(1), Ahmedabad

ITA 1752/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8511 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 30-06-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Assessee Lawyers: M J SHAH

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ./ ITA NO.1752/AHD/2016 / ASSTT. YEAR: 2012-13 SHAMBHU TEXTILE MILLS P.LTD. KASHIRAM MILLS COMPOUND NR.RANIPUR BUS STAND NAROL, AHMEDABAD 382 405. PAN : AACCS 1114 L VS. DCIT, WARD-4(1)(1) PRATYAKSHA KAR BHAVAN AMBAWADI AHMEDABAD. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI M.J. SHAH, AR REVENUE BY : SHRI V.K. SINGH, SR.DR ! / DATE OF HEARING : 18/04/2018 '#$ ! / DATE OF PRONOUNCEMENT: 19/04/2018 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST O RDER OF LD.CIT(A)-7, AHMEDABAD PASSED FOR THE ASSTT.YEAR 20 12-13. 2. ONLY GROUND RAISED IN THIS APPEAL IS AGAINST DIS ALLOWANCE OF EMPLOYEES PF CONTRIBUTION, ESI AND LABOUR WELFARE FUND OF RS.3,66,161/- UNDER SECTION 36(I)(VA) OF THE INCOME TAX ACT, 1961 ON THE GROUND THAT IT WAS NOT PAID WITHIN DUE DATE. 3. IN THE RETURN OF INCOME FILED BY THE ASSESSEE FO R THE ASSTT.YEAR 2012-13, THE ASSESSEE HAS CLAIMED DEDUCTION IN RESP ECT OF EMPLOYEES ITA NO.1752 /AHD/2016 2 PF CONTRIBUTION, ESIC, LABOUR WELFARE FUND ETC. TO THE TUNE OF RS.3,66,161/-. THE ASSESSEE CONTENDED BEFORE THE A O THAT PF CONTRIBUTION WAS DEPOSITED BEFORE THE DUE DATE OF F ILING OF RETURN, AND THEREFORE, THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U NDER SECTION 36(1)(VA) OF THE INCOME TAX ACT. THIS CONTENTION OF THE ASSE SSEE WAS REJECTED BY THE AO ON THE GROUND THAT THE SAID SUM HAS TO BE DE POSITED IN THE CREDIT OF EMPLOYEES WITHIN THE DUE DATE STIPULATE D IN RELEVANT ACTS AND NOT BEFORE DUE DATE OF FILING OF RETURN. THE LD.AO NOTICED DETAILS AND PAYMENTS MADE BY THE ASSESSEE ON VARIOUS DATES IN P ARA 5 OF HIS ORDER. FOLLOWING THE JUDGMENT OF HONBLE JURISDICTIONAL HI GH COURT IN THE CASE OF CIT VS. GSRTC, 265 CTR 64 (GUJ) THE AO TREATED T HE SAME AS INCOME OF THE ASSESSEE AND ADDED TO ITS TOTAL INCOM E. THIS ACTION OF THE AO WAS CONFIRMED BY THE LD.CIT(A). 4. BEFORE US, THE LD.COUNSEL FOR THE ASSESSEE REITE RATED CONTENTIONS AS WERE MADE BEFORE THE REVENUE AUTHORITIES, WHEREA S THE LD.DR RELIED UPON ORDERS OF THE REVENUE. 5. WE HAVE CONSIDERED RIVAL CONTENTIONS AND GONE TH ROUGH THE RECORD. THE AO HAS DISALLOWED DEDUCTIONS TOWARDS S OCIAL WELFARE FUNDS VIZ. PF CONTRIBUTION, ESI AND LABOUR WELFARE FUND UNDER SECTION 36(1)(VA) OF THE INCOME TAX ACT, 1961. THE LD.CIT( A) HAS UPHELD THE DISALLOWANCE BY FOLLOWING DECISION OF THE HONBLE G UJARAT HIGH COURT IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORTATI ON CORPORATION (SUPRA). THE LD.COUNSEL FOR THE ASSESSEE DID NOT D ISPUTE ABOUT PROPOSITION THAT THE HONBLE GUJARAT HIGH COURT HAS DECIDED THIS ISSUE AGAINST THE ASSESSEE. CONSIDERING THE HONBLE HI GH COURTS JUDGMENT, IF PAYMENTS ARE NOT DEPOSITED WITHIN TIME LIMIT PRO VIDED IN THE RESPECTIVE ACTS, I.E. PROVIDENT FUND AND ESI ACT, T HEN DEDUCTION WILL NOT BE ADMISSIBLE TO THE ASSESSEE. AFTER CONSIDERING T HE FINDING OF THE ITA NO.1752 /AHD/2016 3 LD.CIT(A) WE DO NOT FIND ANY ERROR IN IT. THIS GRO UND OF APPEAL IS REJECTED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE COURT ON 19 TH APRIL, 2018 AT AHMEDABAD. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER