Denis Chem Lab Limited, Gandhinagar V. The ACIT, Mehsana Circle, Mehsana

ITA 1884/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2540 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 14-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT & MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO.1884/AHD/2017 (ASSESSMENT YEAR : 2013-14) DENIS CHEM LAB LTD., GIDC ESTATE, PHASE - I, BLOCK NO. 457, VILLAGE CHHATRAL, TAL. KALOL, DIST. GANDHINAGAR. VS. ACIT, MEHSANA CIRCLE, MEHSANA. [PAN NO. AAACD 4123 C] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI TUSHAR HEMANI, A.R. RESPONDENT BY : SHRI VINOD TANWANI, SR. D.R. DATE OF HEARING 11.06.2019 DATE OF PRONOUNCEMENT 18 .0 6 . 2019 O R D E R PER MS. MADHUMITA ROY - JM: THE INSTANT APPEAL FILED BY THE ASSESSEE IS DIRECT ED AGAINST THE ORDER DATED 02.06.2017 PASSED BY THE COMMISSIONER OF INCO ME TAX (APPEALS) GANDHINAGAR, AHMEDABAD ARISING OUT OF THE ORDER DAT ED 22.03.2016 PASSED BY THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE MEH SANA CIRCLE, MEHSANA UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (H EREINAFTER REFERRED AS TO THE ACT) FOR ASSESSMENT YEAR 2013-14. 2. THE ISSUE RELATES TO THE ORDER PASSED BY THE LEA RNED CIT(A) IN CONFIRMING DISALLOWANCE OF RS.14,14,348/- AND RS.60 ,214/- BEING THE AMOUNTS ITA NO.1884/AHD/2017 DENIS CHEM LEB LTD. VS ACIT ASSESSMENT YEAR 2013-14 - 2 - OF EMPLOYEES CONTRIBUTION TO PROVIDENT FUND AND EM PLOYEES STATE INSURANCE CONTRIBUTION WHICH WERE PAID BELATEDLY BY THE APPEL LANT BEFORE US. 3. DURING THE COURSE OF ASSESSMENT PROCEEDING, UPON PERUSAL OF THE PROFIT AND LOSS ACCOUNT IT APPEARED THAT THE APPELLANT HAS DEBITED RS. 20,70,193/- TOWARDS CONTRIBUTION TO PROVIDENT FUND AND OTHER FU NDS. IT FURTHER REVEALED THAT THE ASSESSEE HAS DEPOSITED RS.14,14,348/- BEIN G EMPLOYEES CONTRIBUTION TO PROVIDENT FUND AFTER DUE DATE PRESCRIBED BY THE PROVIDENT FUND ACT AND RS.60,214/- TOWARDS ESIC. RELYING UPON THE JUDGMENT PASSED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT-VS-GUJ ARAT STATE ROAD TRANSPORT CORPORATION REPORTED IN [2014] 41 TAXMANN.COM 100 ( GUJARAT) WHEREIN IT WAS HELD THAT THE EMPLOYEES CONTRIBUTION TO PROVIDENT FUND AND EMPLOYEES STATE INSURANCE CONTRIBUTION IS NOT COVERED BY SECTION 43 B AND IS ONLY ALLOWABLE AS A DEDUCTION U/S 36(1)(VA) IF PAID BY THE DUE DATE P RESCRIBED THEREIN THE LEARNED AO DISALLOWED THE SAME, WHICH WAS CONFIRMED BY THE LEARNED CIT(A). HENCE THE INSTANT APPEAL BEFORE US. 4. AT THE TIME OF HEARING OF THE INSTANT APPEAL, TH E LEARNED COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED BEFORE US THAT THE AMOUNT HAS BEEN PAID BELATEDLY BEFORE THE DUE DATE FOR FILING OF RETURN OF INCOME U/S 139(1) OF THE INCOME TAX ACT, 1961. THE DETAILS WHEREOF WERE NOT TAKEN INTO CONSIDERATION BY THE AUTHORITIES BELOW IN ITS PROPER PROSPECTIVE AS ALSO CONTENDED BY THE LEARNED COUNSEL APPEARING FOR THE ASSESSEE. HE THER EFORE PRAYS FOR SETTING ASIDE THE ISSUE TO THE FILE OF THE LEARNED AO FOR V ERIFICATION OF THE SAME AND TO PASS THE ORDER IN ACCORDANCE WITH LAW. HE, FURTHER RELIED UPON THE JUDGMENT IN SUPPORT OF HIS CASE PASSED BY THE CO-ORDINATE BENCH IN ITA ITA NO.1884/AHD/2017 DENIS CHEM LEB LTD. VS ACIT ASSESSMENT YEAR 2013-14 - 3 - NO.1655/AHD/2015 FOR A.Y, 2011-12 IN THE MATTER OF SHARMA CARS PVT. LTD.- VS-DCIT, CIRCLE 8, AHMEDABAD. ON THE OTHER HAND, LEARNED DR RELIED UPON THE ORDER PASSED BY THE AUTHORITIES BELOW. HOWEVER, HE HAS NOT RAISED ANY SERIOUS OBJECTION SO AS TO SETTING ASIDE THE ISSUE TO THE AUTHORITIES BELOW FOR VERIFICATION OF THE RECORDS AND TO PASS ORDERS ACCO RDINGLY. 5. WE HAVE PERUSED THE JUDGMENT RELIED UPON; IT DEA LS WITH THE ISSUE OF PAYMENTS MADE WITHIN THE GRACE PERIOD OR NOT. HOWEV ER, HAVING HEARD THE LEARNED COUNSEL APPEARING FOR THE PARTIES, HAVING R EGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW TO SE T ASIDE THE ISSUE TO THE FILE OF THE LEARNED AO TO VERIFY THE DETAILS REGARDING DATE OF PAYMENT TOWARDS EMPLOYEES CONTRIBUTION TO PROVIDENT FUND AND EMPLO YEES STATE INSURANCE CONTRIBUTION AS MADE BY THE APPELLANT BEFORE US AND TO PASS ORDERS STRICTLY IN ACCORDANCE WITH LAW UPON GIVING AN OPPORTUNITY OF B EING HEARD TO THE ASSESSEE AND ALSO UPON TAKING INTO CONSIDERATION THE EVIDENC E WHICH THE ASSESSEE MAY CHOOSE TO FILE AT THE TIME OF SAID HEARING BEFORE T HE LEARNED AO. 6. IN THE RESULT, ASSESSEES APPEAL IS THUS PARTLY ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 18/06/2019 SD/- SD/- ( PRAMOD KUMAR ) ( M S. MADHUMITA ROY ) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD; DATED 18/06/2019 PRITI YADAV, SR.PS ITA NO.1884/AHD/2017 DENIS CHEM LEB LTD. VS ACIT ASSESSMENT YEAR 2013-14 - 4 - / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-GANDHINAGAR, AHMEDABAD. 5. , , / DR, ITAT, AHMEDABAD 6. !' #$ / GUARD FILE. / BY ORDER , //TRUE COPY// / (DY./ASSTT.REGISTRAR) , !' / ITAT, AHMEDABAD 1. DATE OF DICTATION 11.06.2019 (DICTATION PAGES 4) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 13.06.2019 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S ,18.06.2019 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER