DCIT, Circle-2(2), Hyderabad, Hyderabad V. Transgraph Consulting Private Limited, Hyderabad, Hyderabad

ITA 21/HYD/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2649 (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
• Section: 43B

Judgement Text

1 ITA.NO.21/HYD/2017 M/S. TRANSGRAPH CONSULTING P. 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.21/HYD/2017 ASSESSMENT YEAR 2012-2013 DCIT, CIRCLE-2(2) HYDERABAD. VS. M/S. TRANSGRAPH CONSULTING P. LTD., HYDERABAD 500 082. PAN AABCT9033A (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI A. SITARAMA RAO FOR ASSESSEE : -NONE- DATE OF HEARING : 04.04.2017 DATE OF PRONOUNCEMENT : 04.04.2017 ORDER PER D. MANMOHAN, V.P. THE ONLY ISSUED 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 UNDER SECTION 43B OF THE I.T . ACT? 2. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A .O. FOUND THAT ASSESSEE PAID CUMULATIVE AMOUNT OF RS.20,17, 627 COLLECTED FROM EMPLOYEES TOWARDS P.F., BEYOND THE TIME LIMIT PRES CRIBED UNDER RELEVANT P.F. ACT BUT WITHIN THE TIME LIMIT PRESCRIBED UN DER SECTION 139(1) OF THE I.T. ACT. THE A.O. CONCLUDED THAT SUCH BE LATED PAYMENTS FALL WITHIN THE AMBIT OF SECTION 36(1)(VA) AND AS A CO NSEQUENCE 2 ITA.NO.21/HYD/2017 M/S. TRANSGRAPH CONSULTING P. LTD., HYDERABAD DISALLOWED THE SAME OVERLOOKING THE FACT THAT THE SAME IS ALLOWABLE AS DEDUCTION UNDER SECTION 43B OF THE ACT. ON AN APPEAL FI LED BY THE ASSESSEE THE LD. CIT(A) REFERRED TO VARIOUS CASE LAW (REFERRED EXTENSIVELY) TO HOLD THAT THE ISSUE IS SQUARELY COVERED BY THE DECIS IONS OF HONBLE SUPREME COURT AS WELL AS ITAT, HYDERABAD BENCH. 3. THE LD. D.R. COULD NOT PLACE ANY DECISION WHEREI N CONTRARY VIEW IS TAKEN BY ANY HIGHER FORUM. 4. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE LD. CIT (A). WE, THEREFORE, CONFIRM THE ORDER OF THE LD. CIT(A) AND DISMISS THE GR OUND OF THE REVENUE. 5. AS PRONOUNCED IN THE OPEN COURT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. SD/- SD/- (B. RAMAKOTAIAH) (D. MANMOHAN) ACCOUNTANT MEMBER V ICE PRESIDENT HYDERABAD, DATED 04 TH APRIL, 2017 VBP/- COPY TO 1. DCIT, CIRCLE-2(2), ROOM NO.513, 5 TH FLOOR, SIGNATURE TOWERS, KONDAPUR, HYDERABAD. 2. M/S. TRANSGRAPH CONSULTING P. LTD., 6-3-655/2/1, A .P. CIVIL SUPPLIES BHAVAN LANE, SOMAJIGUDA, HYDERABAD 500 0 82. 3. CIT(A)-2, HYDERABAD. 4. PR. CIT-2, HYDERABAD. 5. D.R. ITAT A BENCH, HYDERABAD. 6. GUARD FILE