Stalwart Security Services India Limited , Coimbatore V. DCIT Corporate Circle 2 , Coimbatore

ITA 1861/CHNY/2017

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 0785 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-02-2018
• Assessment Year: 2013-2014
• Appeal Filed On: 02-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: BHARATHI KRISHNAPRASAD
• Keywords: Question of law
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI . . . , ! . '#'$ , % !& ' [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ] ./I.T.A. NO.1861/CHNY/2017 / ASSESSMENT YEAR : 2013-2014. M/S. STALWART SECURITY SERVICES INDIA LIMITED, 41/1, NEAR MANIYAKARAR STREET, KRISHNASAMY NAGAR, RAMANATHAPURAM, COIMBATORE 641 045. VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2, COIMBATORE. [PAN AAHCS 7398R] ( () / APPELLANT) ( *+() /RESPONDENT) / APPELLANT BY : MS. BHARATHI KRISHNAPRASAD, C.A. /RESPONDENT BY : NONE /DATE OF HEARING : 06-06-2018 ! /DATE OF PRONOUNCEMENT : 06-06-2018 / O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER IN THIS APPEAL FILED BY THE ASSESSEE, WHICH IS DIR ECTED AGAINST AN ORDER DATED 03.05.2017 OF LD. COMMISSIONER OF INCOM E TAX (APPEALS)- 1, COIMBATORE, IT IS AGGRIEVED ON DISALLOWANCE OF @ 8,93,933/- BEING EMPLOYEES CONTRIBUTION TO ESI AND PF, REMITTED LAT E. ITA NO. 1861/2017 :- 2 -: 2. DEPARTMENT HAS FILED AN APPLICATION FOR ADJOURNMEN T. SINCE THE MATTER IS APPARENTLY COVERED BY THE JUD GMENT OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. INDUSTRIAL SECURITY & INTELLIGENCE INDIA PVT LTD. (TCS NO.585 & 586 OF 2 015, DATED 24.07.2015), WE ARE NOT INCLINED TO GRANT AN ADJOURNMENT. 3. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE SUM WAS REMITTED BEFORE DUE DATE OF FILING THE RETURN OF IN COME AND THEREFORE WAS ALLOWABLE BY VIRTUE OF JUDGMENT OF HONBLE JURI SDICTIONAL HIGH COURT IN THE CASE OF INDUSTRIAL SECURITY & INTELLIGENCE INDIA PVT LTD. (SUPRA). 4. WE HAVE HEARD THE LD. AUTHORISED REPRESENTATIVE AN D PERUSED THE ORDERS OF THE AUTHORITIES BELOW. THE QU ESTION WHETHER REMITTANCE OF EMPLOYEES CONTRIBUTION TO ESI AND PF MADE AFTER DUE DATE PRESCRIBED UNDER THE RESPECTIVE ENACTMENTS BUT BEFORE DUE DATE OF FILING THE RETURN UNDER THE INCOME TAX ACT WAS C ONSIDERED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF INDUSTRIAL SECURITY & INTELLIGENCE INDIA PVT LTD. (SUPRA). WHAT HAS BEEN HELD BY HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF INDUSTRIAL SECURITY & INTELLIGENCE INDIA PVT LTD. (SUPRA) IS REPRODUCED HEREUNDER:- 5. WE FIND THAT THE TRIBUNAL HAS RIGHTY RELIED ON THE DECISION OF THE SUPREME COURT IN THE CASE OF CIT VS. ALOM EXTRUSION S LTD, REPORTED IN 319 ITR 306, WHEREBY THE SUPREME COURT HELD THAT OM ISSION OF SECOND PROVISO TO SECTION 43B AND AMENDMENT TO FIRST PROVI SO BY FINANCE ACT, 2003 ARE CURATIVE IN NATURE AND ARE EFFECTIVE RETRO SPECTIVELY. I.E. WITH EFFECT FROM 01.01.1988 I.E THE DATE OF INSERTION OF FIRST PROVISO. THE ITA NO. 1861/2017 :- 3 -: DELHI HIGH COURT IN THE CASE OF CIT VS. AMIL LTD, R EPORTED IN 321 ITR 508 HELD THAT IF THE ASSESSEE HAD DEPOSITED EMPLOYEES CONTRIBUTION TOWARDS PROVIDENT FUND AND ESI AFTER DUE DATE AS PRESCRIBED UNDER THE RELEVANT ACT, BUT BEFORE THE DUE DATE OF FILING OF RETURN UN DER THE INCOME TAX ACT, NO DISALLOWANCE COULD BE MADE IN VIEW OF THE P ROVISIONS OF SECTION 43B AS AMENDED BY FINANCE ACT, 2003. 6. IN THE PRESENT CASE, THE ASSESSEE HAD REMITTED THE EMPLOYEES CONTRIBUTION BEYOND THE DUE DATE FOR PAYMENT, BUT W ITHIN THE DUE DATE FOR FILING THE RETURN OF INCOME. HENCE, FOLLOWING T HE ABOVE SAID DECISIONS, WE FIND NO REASON TO DIFFER WITH THE FIN DINGS OF THE TRIBUNAL. ACCORDINGLY, WE FIND NO QUESTION OF LAW MUCH LESS A NY SUBSTANTIAL QUESTION OF LAW ARISES FOR CONSIDERATION IN THESE A PPEALS. HONBLE JURISDICTIONAL HIGH COURT HAD ALSO CONSIDER ED CBDT CIRCULAR NO.22/2015, DATED 17.12.2015 WHILE GIVING THE ABOVE JUDGMENT. ACCORDINGLY, FOLLOWING THE ABOVE JUDGMENT, WE ALLOW THE APPEAL OF THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED. ORDER PRONOUNCED ON WEDNESDAY, THE 6 TH DAY OF JUNE, 2018, AT CHENNAI. SD/- SD/- ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( ! . '#'$ ) (ABRAHAM P. GEORGE) % / ACCOUNTANT MEMBER #$ / CHENNAI %& / DATED:6TH JUNE, 2018. KV &' ()*) / COPY TO: 1 . / APPELLANT 3. +,' / CIT(A) 5. )-. / / DR 2. / RESPONDENT 4. + / CIT 6. .01 / GF