DCIT, Circle-2(2), Hyderabad, Hyderabad V. Taurus Excavators Private Limited, Hyderabad, Hyderabad

ITA 19/HYD/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2650 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 05-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A SITARAMA RAO
• Keywords: Tax effect
• Section: 43B

Judgement Text

1 ITA.NO.19/HYD/2017 M/S. TAURUS EXCAVATORS PVT. LTD., HYDERABAD. IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA.NO.19/HYD/2017 ASSESSMENT YEAR 2012-2013 DCIT, CENTRAL CIRCLE-2(2) HYDERABAD. VS. M/S. TAURUS EXCAVATORS P. LTD., HYDERABAD. PAN AADCT0227E (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI A. SITARAMA RAO FOR ASSESSEE : SHRI A. HARISH DATE OF HEARING : 04.04.2017 DATE OF PRONOUNCEMENT : 04.04.2017 ORDER PER B. RAMAKOTAIAH, A.M. THE ONLY GROUND URGED BY THE REVENUE IN THIS APPEAL READS AS UNDER : IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHETHE R THE CIT(A) IS CORRECT IN LAW IN HOLDING THAT THE PAYMENT OF THE E MPLOYEES CONTRIBUTION TOWARDS EPF AND ESI BY THE EMPLOYER AS SESSEE, WHICH IS NOT IN CONSONANCE WITH THE EXPLANATION TO SECTIO N 36(1)(VA) IS ENTITLED FOR DEDUCTION U/S.43B OF THE I.T. ACT ? 2. AT THE OUT SET, THE DISPUTED DISALLOWANCE ARE ONLY TO THE TUNE OF RS.4,91,790 AND THE TAX EFFECT INVOLVED FOR SUCH DI SPUTED ADDITION WORKS OUT TO LESS THAN RS.10 LAKHS AND THEREFORE, AS P ER THE CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 THE REVENUE OUGHT NOT TO HAVE FILE ANY APPEAL AND ON THE OTHER HAND, IT IS DU TY BOUND TO WITHDRAW ITS APPEAL. IN FACT, THE AUTHORISATION ISSUED B Y THE 2 ITA.NO.19/HYD/2017 M/S. TAURUS EXCAVATORS PVT. LTD., HYDERABAD. COMMISSIONER OF INCOME TAX DOES NOT REFER TO ANY EXCE PTIONAL CIRCUMSTANCES PROVIDED IN THE CIRCULAR SO AS TO ENABLE THE REVENUE TO FILE AN APPEAL. EVEN OTHERWISE, THE ISSUE BEFORE US S TANDS SQUARELY COVERED BY THE DECISION OF THE APEX COURT IN THE CASE O F ALOOM EXTRUSIONS 319 ITR 366 WHEREIN THE COURT OBSERVED THAT BELATED PAYMENTS OF PF AND ESI AMOUNTS ARE NOT COVERED UNDER TH E PROVISIONS OF SECTION 43B OF THE ACT. 3. THE LD. D.R. COULD NOT PLACE BEFORE US ANY CONTRA RY DECISION ON THIS ISSUE. THUS, ON BOTH COUNTS THE APPEAL FILED BY THE REVENUE DESERVES TO BE DISMISSED. WE HOLD ACCORDINGLY. 4. AS PRONOUNCED IN THE OPEN COURT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. SD/- SD/- (D. MANMOHAN) (B. RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMBER HYDERABAD, DATED 04 TH APRIL, 2017 VBP/- COPY TO 1. DCIT, CENTRAL CIRCLE-2(2), ROOM NO.513, 5 TH FLOOR, SIGNATURE TOWERS, KONDAPUR, HYDERABAD. 2. M/S. TAURUS EXCAVATORS PVT. LTD., 2-1-415, STREET NO. 4, OSMANIA UNIVERSITY, NALLAKUNTA, HYDERABAD. 3. CIT(A)-2, HYDERABAD. 4. PR. CIT-2, HYDERABAD. 5. D.R. ITAT A BENCH, HYDERABAD. 6. GUARD FILE