Tax Tech India Pvt.Ltd., Gandhinagar V. The DCIT, Gandhinagar Circle, Gandhinagar

ITA 1770/AHD/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9353 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 09-08-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S. A. SUKHADIA
• Section: 143(3); 64

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER &SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./I.T.A. NO. 1770/AHD/2018 ( / ASSESSMENT YEAR: 2015-16) TAX TECH INDIA PVT. LTD. KH-0 NORTH STAR BUILDING, SARGASHAN CORSS ROAD, SARKHEJ GANDHINAGAR HIGHWAY, GANDHINAGAR / VS. DY. CIT GANDHINAGAR CIRCLE 4 TH FLOOR, BLOCK NO. 14 UDYOG BHAVAN, SECTOR-11 GANDHINAGAR ./ ./PAN/GIR NO. : AAB CT8 854 B ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S. A. SUKHADIA & CO., AR / RESPONDENT BY: SHRI MUDIT NAGPAL, SR. DR ! /DATE OF HEARING 16/09/2019 '# ! / DATE OF PRONOUNCEMENT 01/10/2019 $% /O R D E R PER AMARJIT SINGH - AM: THE APPEAL FILED BY THE ASSESSEE FOR A.Y. 2015-16, ARISE FROM ORDER OF THE CIT(A) GANDHINAGAR, AHMEDABAD DATED 08.06.2018, I N PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. 2. THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE O RDER OF LD. CIT(A) GANDHINAGAR IN CONFIRMING THE ADDITION MADE BY THE AO ON DISALL OWANCE U/S. 36(1)(VA) R.W.S 2(24)(X) OF THE ACT OF RS. 4,04,947/- IN RESPECT OF DELAY IN MAKING PAYMENT OF EMPLOYEES CONTRIBUTION TOWARD PROVIDENT FUND. 3. THE FACT IN BRIEF IS THAT ASSESSEE HAS FILED RET URN OF INCOME OF RS. 66,81,230/- AND ASSESSMENT U/S. 143(3) OF THE ACT WAS FINALIZED ON 29.09.2017. DURING THE COURSE ITA NO. 1770/AHD/2018(TAX TECH INDIA PVT. LTD. VS. DCIT) A.Y. 2015-16 2 OF ASSESSMENT THE AO NOTICED THAT ASSESSEE HAS MADE PAYMENT OF RS. 4,04,947/- TOWARDS EMPLOYEES CONTRIBUTION TO THE PROVIDENT FU ND AND RS. 25,096/- TOWARDS EMPLOYEES CONTRIBUTION TO ESI PAYMENT AFTER THE DU E DATE AS PRESCRIBED IN THE RELEVANT ACT. CONSEQUENTLY THE AO HAS DISALLOWED E MPLOYEES CONTRIBUTION TO PROVIDENT FUND AND ESI AGGREGATING TO RS. 4,30,043/ - AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 4. THE ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT (A). LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE AFTER PLACING RELIANCE O N THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. GUJARAT STATE ROA D TRANSPORT CORPORATION (2014) 41 TAXMANN.COM 100 (GUJ.). 5. WE HAVE HEARD THE RIVAL CONTENTION AND PERUSED T HE MATERIAL ON RECORD. THE ASSESSEE HAS NOT DEPOSITED THE CONTRIBUTION RECEIVE D FROM THE EMPLOYEES UNDER PROVIDENT FUND AND ESI WITHIN THE DUE DATE AS PRESC RIBED IN THE PROVIDENT FUND ACT AND ESI ACT. WE CONSIDER THAT THE DECISION OF HON BLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORT CORPORATION 265 CTR 64 HAS HELD THAT WHEN THE EMPLOYER HAS NOT CREDITED THE SUM RECEIVED BY I T AS EMPLOYEES CONTRIBUTION TO EMPLOYEES ACCOUNT IN THE RELEVANT FUND ON OR BEFORE THE DUE DATE PRESCRIBED IN EXPLANATION TO SEC. 36(I)(VA) THE ASSESSEE SHALL NO T BE ENTITLED TO DEDUCTION. IN VIEW OF THE ABOVE FACTS AND JUDICIAL FINDINGS WE UPHOLD THE DECISION OF LD. CIT(A). ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS DISMISSE D. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. SD/- SD/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNT ANT MEMBER AHMEDABAD: DATED 01/10/2019 TANMAY TRUE COPY / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. $ / ASSESSEE 3. &' ( / CONCERNED CIT 4. ( - / CIT (A) THIS ORDER PRONOUNCED IN OPEN COURT ON 01/10/2019 ITA NO. 1770/AHD/2018(TAX TECH INDIA PVT. LTD. VS. DCIT) A.Y. 2015-16 3 5. )*+ ' , ! ' , ,-$&$ / DR, ITAT, AHMEDABAD 6. +. / / GUARD FILE. BY ORDER / $% , 0 / , ! ' , ,-$&$ 1 1.DATE OF DICTATION ON 17.09.2019 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 18.09.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 20.09.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 20.09.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR . P.S./P.S 03.10.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 03.10.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER