Agew Steel Manufactauturers Pvt. Ltd., Ahmedabad V. The ITO, Ward-1(1)(4), Ahmedabad

ITA 1898/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6188 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 09-10-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 18-08-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B; 142(1); 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI WASEEM AHMED, ACCOUNTANT MEMBER) ITA. NO: 1898/AHD/2017 (ASSESSMENT YEAR: 2014-15) AGEW STEEL MANUFACTURERS PVT. LTD. 506, ANIKET BUILDING, NR. MUNICIPAL MARKET, C.G. ROAD, AHMEDABAD-380009 V/S THE INCOME TAX OFFICER, WARD-1(1)(4), AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AABCA6055D APPELLANT BY : SHRI KARAN SHAH, A.R. RESPONDENT BY : SHRI VINOD TANWANI, SR. D.R. ( )/ ORDER DATE OF HEARING : 09 -10-201 9 DATE OF PRONOUNCEMENT : 10 -10-2019 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. CIT(A)-1, AHMEDABAD DATED 16.06.2017 PERTAINING TO A.Y. 2014-15 AND FOR CONFIRMING THE DISALLOWANCE OF RS. 18,69,737/- MADE BY THE A.O. ON ACCOUNT OF DELAYED PAYMENT OF EMPLOYEES CONTRIBUTION TO PRO VIDENT FUND AND ESIC. ITA NO. 1898 /AHD/2017 . A.Y. 2014-15 2 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF IRON AND STEEL DOORS, WINDOW, D OOR FRAMES, PRESSED STEEL PRODUCTS AND OTHER STEEL FABRICATIONS. 3. ON PERUSAL OF COLUMN NO.20B OF FORM NO.3CD OF THE A UDIT REPORT IT IS FOUND THAT THE ASSESSEE HAS NOT DEPOSITED THE EMPLOYEES C ONTRIBUTION TOWARDS PROVIDED FUND AND ESI WITHIN STIPULATED TIME. THE D ETAILS OF WHICH ARE AS UNDER- SR. NO. NATURE OF FUND DUE DATE FOR PAYMENT ACTUAL DATE FOR PAYMENT AMOUNT 1. PROVIDED FUND 20/05/2013 22/05/2013 RS. 1,31,197/ - 2. - DO - 20/06/2013 03/07/2013 RS. 1, 39,386/ - 3. - DO - 20/07/2013 23/07 /2013 RS. 1, 32,645/ - 4. - DO - 20/08/2013 12/09/2013 RS. 1, 43,234/ - 5. - DO - 20/09/2013 05/10/2013 RS. 1,3 7,396/ - 6. - DO - 20/10/2013 06/11/2013 RS. 1,28,762/ - 7. - DO - 20/11/2013 28/12/2013 RS. 1, 38,2047 - 8. - DO - 20/12/2013 01 /01/2014 RS. 1,22,2607 - 9. -DO- 20/01/2014 07/02/2014 RS. 1,36,188/- 10. -DO- 20/02/2014 30/03/2014 RS. 1,51,489/- 11. - DO - 20/03/2014 16/04/2014 RS. 1,4 1,310/ - 12. - DO - 20/04/2014 01/05/2014 RS. 1,56,487/ - TOTAL RS. 16,5 8,558/ - ESI SR. NO. NATURE OF FUND DUE DATE FOR PAYMENT ACTUAL DATE FOR PAYMENT AMOUNT 1. EMPLOYEE'S CONTRIBUTION 21/0572013 25/05/2013 RS.18,063/ - ITA NO. 1898 /AHD/2017 . A.Y. 2014-15 3 2. - DO - 21/06/2013 03/07/2013 RS. 1 9,405/ - 3. - DO - 21/08/2013 07/09/2013 RS. 1 9, 885/ - 4. - DO - 21/09/2013 04/1072013 RS. 1 9,325/ - 5. - DO - 21/10/2013 31/10/2013 RS. 1 8,329/ - 6. - DO - 21/11/2013 28/11/2013 RS. 1 9,380/ - 7. - DO - 21/12/2013 01/01/2013 RS. 16,776/ - 8. - DO - 21/01/2014 30/0172014 RS. 18,669/ - 9. - DO - 21/02/2014 03/03/2014 RS.20,933/ - 10. -DO- 21/03/2014 28/03/2014 RS. 18,909/- 11. -DO- 21/04/2014 01/05/2014 RS.2 1,505/- TOTAL RS.2,11,179/ - IN VIEW OF THE ABOVE, THE ASSESSEE VIDE NOTICE U /S 142(1) DATED 21.07.2016 WAS REQUESTED TO EXPLAIN AS TO WHY THE DISALLOWANCE OF RS.18,69,737/- FOR THE LATE PAYMENT OF EMPLOYEES CONTRIBUTION OF PROVIDED FUND AND ESI SHOULD NOT BE MADE. 4. THEREAFTER ASSESSEE FILED REPLY WHICH WAS NOT TENAB LE IN THE EYES OF LD. A.O. AND HE MADE ADDITION OF RS. 18,69,737/-. 5. THEREAFTER ASSESSEE PREFERRED FIRST STATUTORY APPEA L BEFORE THE LD. CIT(A) WHO CONFIRMED THE ACTION OF THE A.O. 6. NOW ASSESSEE HAS COME BEFORE US BY WAY OF SECOND AP PEAL. 7. AT THE TIME OF HEARING LD. A.R. SHRI KARAN SHAH FAI RLY CONCEDED THAT MATTER IS AGAINST THE ASSESSEE IN VIEW OF THE HONBLE GUJARAT HIGH COURT ORDER IN THE ITA NO. 1898 /AHD/2017 . A.Y. 2014-15 4 CASE OF CIT VS. GSRTC AND REQUESTED THAT HE DOES NO T WANT TO CONTEXT THE APPEAL. SINCE LD. A.R. HAS CONCEDED HIMSELF THAT MA TTER IS AGAINST HIM AND JUDGMENT OF HONBLE GUJARAT HIGH COURT IN THE MATTE R OF CIT VS. GSRTC 366 ITR 170 WHEREIN IT IS HELD AS UNDER: 'SECTION 43B, READ WITH SECTION 36(1)(VA) OF THE INC OME-TAX ACT, 1961 - BUSINESS DISALLOWANCE CERTAIN DEDUCTIONS TO BE ALLOWED ON ACTUAL PAYMENT (EMPLOYEES CONTRIBUTION) - WHETHER WHERE AN EMPLOYER HAS NOT C REDITED SUM RECEIVED BY IT AS EMPLOYEES' CONTRIBUTION TO EMPLOYEES' ACCOUNT IN RELEVANT FUND ON OR BEFORE DUE DATE AS PRESCRIBED IN EXPLANATION TO SECTION 36 (1)(VA), ASSESSES SHALL NOT BE ENTITLED TO DEDUCTION OF SUCH AMOUNT THOUGH HE DEPO SITS SAME BEFORE DUE DATE PRESCRIBED UNDER SECTION 43B I.E., PRIOR TO FILING OF RETURN UNDER SECTION 139(1) - HELD, YES - ASSESSES STATE TRANSPORT CORPORATION CO LLECTED A SUM BEING PROVIDENT FUND CONTRIBUTION FROM ITS EMPLOYEES - HOWEVER, IT HAD DEPOSITED LESSER SUM IN PROVIDENT FUND ACCOUNT ASSESSING OFFICER DISALLOW ED SAME UNDER SECTION 43B - HOWEVER, COMMISSIONER (APPEALS) DELETED DISALLOWANC E ON GROUND THAT EMPLOYEES CONTRIBUTION WAS DEPOSITED BEFORE FILING RETURN - WHETHER SINCE ASSESSEE HAD NOT DEPOSITED SAID CONTRIBUTION IN RES PECTIVE FUND ACCOUNT ON DATE AS PRESCRIBED IN EXPLANATION TO SECTION 36(1 )(VA), DISALLOWANCE MADE BY ASSESSING OFFICER WAS JUST AND PROPER - HELD, YES [ PARA 8] [IN FAVOUR OF REVENUE] 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMIS SED. ORDER PRONOUNCED IN OPEN COURT ON 10- 10- 2019 SD/- SD/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 10/10/2019