BHILAI PRASHIKSHU KALYAN SAMITI, , BHILAI V. THE DEPUTY COMMISSIONER OF INCOME TAX -1(1), BHILAI, BHILAI

ITA 213/RPR/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3538 (ITAT-RAIPUR)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 05-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R NAMDEV
• Assessee Lawyers: S R RAO
• Keywords: Set aside
• Section: 43B; 143(3); 6; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI PARTHA SARATHI CHAUDHU RY , JM . / I TA NO S . 213 & 214 /RPR /20 17 / ASSESSMENT YEARS : 2013 - 14 & 2014 - 15 BHILAI PRASHIKSHU KALYAN SAMITI, QR. NO.10B, STREET - 4, SECTOR - 2, BHILAI, DIST. DURG ( C.G.) PAN : AABTB0857H ....... / APPELLANT / V/S. THE DEPUTY COMMISSIONER OF INCOME TAX 1(1), BHILAI, DIST. DURG (C.G.) / RESPONDENT A SSESSEE BY : SHRI S.R. RAO REVENUE BY : SHRI R. NAMDEV / DATE OF HEARING : 09 .05 .2019 / DATE OF PRONOUNCEMENT : 09 .05 .2019 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THESE TWO APPEALS PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LD. CIT(APPEALS) - II, RAIPUR (C.G.) DATED 26.04.2017 FOR THE 2 ITA NO S . 213 & 214 /RPR /20 17 A.Y S . 2013 - 14 & 2014 - 15 ASSESSMENT YEARS 2013 - 14 & 2014 - 15 AS PER FOLLOWING GROUNDS OF APPEAL ON RECORD: 1. T HE LD. CIT(APPEALS) HAS ERRED IN CONFIRMING DISALLOWANCE OF RS.38,24,809/ - MADE U/S.2(24)(X) R.W.S. 36( 1 )(VA) OUT OF PAYMENT MADE FOR EPF AND ESIC PERTAINING TO EMPLOYEES CONTRIBUTION WITHOUT CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND DECISION S OF VARIOUS JUDICIAL AUTHORITIES INCLUDING THE JURISDICTIONAL BENCH OF HONBLE ITAT. 2. THE ORDER OF LD. CIT (APPEALS) IS BAD IN LAW AND ON FACTS. 3. THE APPELLANT RESERVES THE RIGHT TO ADD, ALTER, AMEND, OMIT ALL OR ANY OF THE GROUNDS OF APPEAL WITH PE RMISSION OF THE HONBLE APPELLATE AUTHORITY. 2. THESE TWO APPEALS WERE HEARD TOGETHER. SINCE ISSUES COMMON AND FACTS ARE SIMILAR, THESE APPEALS ARE BEING DISPOSED OF VIDE THIS CONSOLIDATED ORDER. FOR THE SAKE OF CONVENIENCE, WE SHALL TAKE ITA NO.213/RPR/ 2017 AS LEAD CASE. ITA NO.213/RPR/2017 A.Y.2013 - 14 3. THE BRIEF FACTS IN THIS CASE ARE THAT THE ASSESSEE IS A REGISTERED SOCIETY ENGAGED IN THE ACTIVITY OF EXECUTING CLEANING CONTRACTS FOR BHILAI STEEL PLANTS AND MUNICIPAL CORPORATION BHILAI . THE RETURN OF INCOME FOR THE YEAR 2013 - 14 WAS FILED ON 31.03.2015 DECLARING TOTAL AT RS. 3580020/ - . ASSESSMENT WAS COMPLETED U/S 143(3) WHEREIN THE TOTAL INCOME WAS ASSESSED AT RS. 7404830/ - . THE ADDITION RELATES TO DISALLOWANCE OF RS. 3 ITA NO S . 213 & 214 /RPR /20 17 A.Y S . 2013 - 14 & 2014 - 15 3824809/ - ON ACCOU NT OF UNPAID EMPLOYEES CONTRIBUTION TOWARDS EP F AND ESIC MADE U/S 36(1 )( VA) R.W.S. 2(24)(X) OF THE ACT. 4. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESSEE HAS PLACED RELIANCE ON THE RATIO LAID DOWN BY THE HONBLE SUPREME COURT OF INDIA IN THE CASE OF P RINCIPAL COMMISSIONER OF INCOME TAX, JAIPUR VS. RAJASTHAN STATE BEVERAGES CORPORATION LTD. (SC) 2017 ITL 1644 AND COPY OF WHICH HAS BEEN FILED ON RECORD . THE LD. AR OF THE ASSESSEE FURTHER SUBMITTED THAT THE ASSESSEE FILED RETURN OF INCOME FOR A.YR . 2014 - 15 DECLARING TOTAL INCOME AT RS.81,27,520/ - AND IN ASSESSMENT MADE U/S. 143(3) OF THE INCOME - TAX ACT, 1961, TOTAL INCOME WAS ASSESSED AT RS. 1,26,23,470/ - AFTER MAKING DISALLOWANCE OF RS.44,95,952/ - U/S.2(24)(X) R.W.S. 36(L)(VA) OF THE ACT OUT OF PA YMENT MADE FOR EPF AND ESIC PERTA INING TO EMPLOYEES CONTRIBUTION AND PAYMENT OF EMPLOYEES CONTRIBUTION TO EPF AND ESIC, THOUGH MADE AFTER DUE DATE OF PAYMENT UNDER THE RELEVANT LEGISLATIONS, WAS MADE BEFORE THE DUE DATE FOR FILING OF INCOME - TAX RETURN U/S. 139(1) OF THE ACT. IT WAS SUBMITTED IN FIRST APPEAL THAT IN VIEW OF ORDER OF HONBLE JURISDICTIONAL TRIBUNAL IN THE CASE OF ACIT VS. VINDHYA VASINI INDUSTRIES LD. IN IT APPEAL NO. 58/BIL/2012 , NO DISALLOWANCE WAS CALLED FOR. THE LD. AR OF THE ASSESSEE FUR THER SUBMITTED THAT SLP FILED BY THE DEPARTMENT IN THE CASE OF PRINCIPAL COMMISSIONER OF INCOME TAX, JAIPUR VS. RAJASTHAN STATE 4 ITA NO S . 213 & 214 /RPR /20 17 A.Y S . 2013 - 14 & 2014 - 15 BEVERAGES CORPORATION LTD. (SC) 2017 ITL 1644 WAS DISMISSED AND HENCE, THE ISSUE HAS ATTAINED FINALITY AND NO MORE REMAINS RES - I NTEGRA. 5. WE HAVE PERUSED THE CASE RECORDS AND HEARD THE RIVAL CONTENTIONS. WE HAVE ALSO CONSIDERED THE RATIO LAID DOWN BY THE HONBLE SUPREME COURT OF INDIA IN THE CASE OF PRINCIPAL COMMISSIONER OF INCOME TAX, JAIPUR VS. RAJASTHAN STATE BEVERAGES CORPOR ATION LTD. (SC) 2017 ITL 1644 WHEREIN IT HAS BEEN HELD THAT CERTAIN DEDUCTIONS TO BE ALLOWED ONLY ON ACTUAL PAYMENT (PF & ESI CONTRIBUTION). IT HAS FURTHER HELD THAT AMOUNT CLAIMED ON PAYMENT OF PF AND ESI HAVING BEEN DEPOSITED ON OR BEFORE DUE DATE OF FIL ING RETURNS, SAME COULD NOT BE DISALLOWED UNDER SECTION 43B OR UNDER SECTION 36(1)(VA) OF THE ACT. RESPECTFULLY FOLLOWING THE ABOVE MENTIONED RATIO AS LAID DOWN BY THE HONBLE SUPREME COURT OF INDIA, WE ARE OF THE VIEW THAT NO DISALLOWANCE IS CALLED FOR I N THE INSTANT CASE OF THE ASSESSEE U/S.2(24)(X) R.W.S.36 (1)(VA) OUT OF PAYMENT MADE FOR EPF AND ESIC PERTAINING TO EMPLOYEES. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD. CIT(APPEALS) AND APPEAL OF THE ASSESSEE IS ALLOWED. 6. IN THE RESULT, APPEAL OF TH E ASSESSEE IN ITA NO.213/RPR/2017 IS ALLOWED. 5 ITA NO S . 213 & 214 /RPR /20 17 A.Y S . 2013 - 14 & 2014 - 15 7. SINCE FACTS ARE COMMON AND ISSUES SIMILAR IN ITA NO.214/RPR/2017, OUR DECISION RENDERED IN ITA NO.213/RPR/2017 SHALL APPLY DIRECTLY TO ITA NO.214/RPR/2017. THEREFORE, IN THIS CASE ALSO, WE SET ASIDE THE ORDE R OF THE LD. CIT(APPEALS) AND APPEAL OF THE ASSESSEE IS ALLOWED. 8. IN THE COMBINED RESULT, BOTH THE APPEALS OF THE ASSESSEE FOR THE ASSESSMENT YEARS 2013 - 14 AND 2014 - 15 ARE ALLOWED. ORDER PRO NOUNCED ON 09TH DAY OF MA Y , 201 9 . SD/ - SD/ - ANIL CHATURVEDI PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER / RAIPUR ; / DATED : 09 TH MA Y, 2019 . SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (APPEALS) - II, RAIPUR. 4. THE PR. CIT - II, RAIPUR. 5. , , , / DR, ITAT, RAIPUR BENCH, RAIPUR . 6. / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, RAIPUR . 6 ITA NO S . 213 & 214 /RPR /20 17 A.Y S . 2013 - 14 & 2014 - 15 DATE 1 DRAFT DICTATED ON 09 .05 .2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 09 .05 .201 9 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 7 ITA NO S . 213 & 214 /RPR /20 17 A.Y S . 2013 - 14 & 2014 - 15 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER