Imperial Engineering Company, Ernakulam V. Deputy Commissioner of Income Tax Circle 2 (1), Ernakulam, Ernakulam

ITA 205/COCH/2021

• Counselvise Citation: [2022] 107 COUNSELVISE.COM (IT) 1055 (ITAT-COCHIN)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 21-11-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B; 139(1)

Judgement Text

ITA Nos.205/Coch/2021 Imperial Engineering Company, Ernakulam IN THE INCOME TAX APPELLATE TRIBUNAL BENCH: COCHIN BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER ITA No.205/Coch/2021 Assessment Year: 2007-08 Imperial Engineering Company 1634, Imperial House, K.K. Road Ernakulam 682017 PAN NO : AAAFI7267F Vs. Deputy Commissioner of Income-tax Circle-2(1) Ernakulam APPELLANT RESPONDENT Appellant by : Shri V.M. Veeramani, A.R. Respondent by : Smt. J.M. Jammuna Devi, Sr. D.R. Date of Hearing : 02.08.2022 Date of Pronouncement : 02.08.2022 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: This appeal by the assessee is directed against order of CIT(A), NFAC, Delhi dated 28.10.2021 for the A.Y. 2007-08. 2. The issue in this appeal is with regard to disallowance of remittance of PF after the due date under the respective Act but before the due date u/s 139(1) of the Income-tax Act,1961 ['the Act' for short] amounting to Rs.15,789/-. 3. After hearing both the parties, we are of the opinion that this issue came for consideration in the case of Popular Vehicles and ITA Nos.205/Coch/2021 Imperial Engineering Company, Ernakulam Page 2 of 3 Services Pvt. Ltd. Vs. CIT reported in 406 ITR 150, wherein held as under:- “I.T.A. No.51/Coch/2019 "Held, dismissing the appeal, the employees' contribution was covered by clause (va) of section 36(1) and the deduction was restricted by the Explanation below it. If the employer's contribution under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees' State Insurance Act, 1948 for the financial year 2007-08 was paid after the year but before the date of filing of the return for that year, it was allowable as a deduction in the assessment year, dehors the fact that it was paid in the subsequent year. Since the employees' contribution was collected from the employees as a deduction in their salary itself it would in effect be income of the assesses, as had been indicated in the definition of "income" under section 2(24)(x). The employees' contribution towards the funds was regulated by sub-clause (x) of section 2(24) and clause (va) of section 36(1) and would not be affected by section 43B. The non obstante clause of section 43B had no effect in so far as the employees' contribution which was specifically covered by clause (va) of section 36(1). By virtue of the Explanation below clause (va), no deduction could be claimed if the contribution had not been paid after collection from the employees by way of deduction from their salaries, within the due date under the labour welfare Acts. The deletion of a proviso under section 43B could not render otiose the Explanation under section 36(1)(va)." 4. Further, the issue of allowability of deduction under section 36(1)(va) of the Act on the employees contribution towards EPF was covered against the assessee by the decision of the High Court of Kerala in the case of Merchem Ltd, (378 1TR 443), wherein it was held that the deduction under section 36(1)(va) of the Act is available to the assessee only if the payment is deposited before the due date specified in that section. Hence, the Ld. CIT(A) held that the assessee is not entitled for deduction of contribution of employees u/s. 36(1)(va) of the Act. 5. In view of above judgment of the Jurisdictional High Court cited (supra), we are inclined to dismiss this ground taken by the assessee. ITA Nos.205/Coch/2021 Imperial Engineering Company, Ernakulam Page 3 of 3 6. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 2 nd Aug, 2022 Sd/- (George George K.) Judicial Member Sd/- (Chandra Poojari) Accountant Member Bangalore, Dated 2 nd Aug, 2022. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.