Oneiro Chemicals Ltd., Vadodara V. The Income Tax Officer, Ward-2(1)(1), Vadodara

ITA 2157/AHD/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8434 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 17-08-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G C DAXINI
• Section: 43B

Judgement Text

, *,L *,L*,L *,L- -- -,E ,E,E ,E- -- -LH* LH* LH* LH* IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD LOZJH EGKOHJ IZLKN] U;KF;D LNL; ,OA VEJTHR FLAG] LOZJH EGKOHJ IZLKN] U;KF;D LNL; ,OA VEJTHR FLAG] LOZJH EGKOHJ IZLKN] U;KF;D LNL; ,OA VEJTHR FLAG] LOZJH EGKOHJ IZLKN] U;KF;D LNL; ,OA VEJTHR FLAG] YS [KK LNL; DS LE{KA YS[KK LNL; DS LE{KA YS[KK LNL; DS LE{KA YS[KK LNL; DS LE{KA (BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ) ./ I.T.A. NO.2157/AHD/2016 ( / ASSESSMENT YEAR : 2012-13) ONEIRO CHEMICALS LTD. 1 ST FLOOR, ABS TOWERS, O.P. ROAD, VADODARA-390007 / VS. THE INCOME TAX OFFICER WARD 2(1)(1), VADODARA ./ ./ PAN/GIR NO. : AAACO 7069 C ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : --NONE-- / RESPONDENT BY : SHRI G. C. DAXINI, SR. D.R. / DATE OF HEARING 20/09/2017 !'# / DATE OF PRONOUNCEMENT 22/09/2017 $% / O R D E R PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE OR DER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-2, VADODARA, DA TED 20/05/2016 FOR THE ASSESSMENT YEAR (AY) 2012-13, ON THE FOLLOW ING GROUNDS: THE LD. CIT(A)-2, BARODA HAS ERRED IN LAW AND IN FA CTS IN UPHOLDING THE ACTION OF THE LD. AO IN THE ADDITION OF RS.4,90,899 /- BEING THE AMOUNT OF EMPLOYEES CONTRIBUTION OF P.F. PAID BEYOND THE DUE DATES PRESCRIBED UNDER THE RESPECTIVE ACTS. THE IMPUGNED ADDITION BE ING BAD IN LAW AND CONTRARY TO FACTS DESERVES TO BE DELETED. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERI ALS ON RECORD ARE AS UNDER:- ITA NO.2157/AHD /2016 ONEIRO CHEMICALS LTD. VS. ITO ASST.YEAR 2012-13 - 2 - IN THIS CASE, THE ASSESSEE COMPANY IS ENGAGED IN T HE BUSINESS OF MANUFACTURING AND TRADING OF CHEMICALS AND IT HAS F ILED RETURN OF INCOME ON 30/09/2012 DECLARING TOTAL LOSS OF RS.53,67,873/ -. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER DI SALLOWED A SUM OF RS.48,154/- U/S.40(A)(IA), RS.4,90,899/- ON ACCOUNT OF NON-PAYMENT OF PROVIDENT FUND IN TIME, PAYMENT TO UNAPPROVED GRATU ITY FUND AT RS.2,36,518/- AND MADE 1/5 TH DISALLOWANCE OUT OF VARIOUS EXPENSES RESULTING INTO ADDITIONS OF RS.2,15,491/-. ALL THES E ADDITIONS/DISALLOWANCES HAVE BEEN DISCUSSED BY THE ASSESSING OFFICER IN PARA-4 TO 7.3. ON VERIFICATION OF AUDIT REPORT AND ITS ANNEXURE, IT IS NOTICED BY THE LEARNED AO THAT THE ASSESSEE HAS MADE BELATED P AYMENT OF PROVIDENT FUND OF RS.4,90,899/-. AS PER PROVISIONS OF SECTION 36(1)(VA) OF THE ACT. DEDUCTION IN RESPECT OF ANY SUM RECEIVED BY THE TAX PAYER AS CONTRIBUTION FROM ITS EMPLOYEE TOWARDS ANY WELFARE FUND OF EMPLO YEE IS ALLOWABLE AS DEDUCTION ONLY IF SUCH SUM IS CREDITED TO THE EMPLO YEES ACCOUNT IN THE RELEVANT FUND ON OR BEFORE DUE DATE. THE AR OF THE ASSESSEE WAS ASKED TO GIVE JUSTIFICATION OF LATE PAYMENT OF PF. THE AR SU BMITTED HIS REPLY ON 23/02/2015. THE AO HAS NOT SUBMITTED ANY REASONS FO R LATE PAYMENT. SINCE THE ASSESSEE HAS FAILED TO PAY, THE SAME ARE DISALLOWED AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE AND ADDITION OF RS.4,90,899/- WAS MADE BY THE LEARNED AO. 3. AGAINST THE SAID ORDER ASSESSEE PREFERRED FIRST STATUTORY APPEAL BEFORE THE LEARNED CIT(A) WHO DISMISSED THE APPEAL OF THE ASSESSEE. ITA NO.2157/AHD /2016 ONEIRO CHEMICALS LTD. VS. ITO ASST.YEAR 2012-13 - 3 - 4. NOW APPELLANTS APPEAL IS BEFORE US. 5. WE HAVE GONE THROUGH THE RELEVANT RECORD. WE HAV E HEARD BOTH THE PARTIES. THIS ISSUE IS COVERED AGAINST THE APPELLAN T BY THE JUDGMENT OF HONBLE GUJARAT HIGH COURT IN THE CASE OF GUJARAT STATE ROAD TRANSPORT CORPORATION, 41 TAXMAN.COM 100, RELEVANT EXTRACT FROM THE JUDGMENT IS QUOTED AS UNDER:- SECTION 43B, READ WITH SECTION 36(1)(VA) OF THE IN COME-TAX ACT, 1961 BUSINESS DISALLOWANCE CERTAIN DEDUCTIONS TO BE AL LOWED ON ACTUAL PAYMENT (EMPLOYEES CONTRIBUTION) WHETHER WHERE AN EMPLOYER HAS NOT CREDITED SUM RECEIVED BY IT AS EMPLOYEES CONTR IBUTION TO EMPLOYEES ACCOUNT IN RELEVANT FUND ON OR BEFORE DU E DATE AS PRESCRIBED IN EXPLANATION TO SECTION 36(1)(VA), ASSESSEE SHALL NOT BE ENTITLED TO DEDUCTION OF SUCH AMOUNT THOUGH HE DEPOSITS SAME BE FORE DUE DATE PRESCRIBED UNDER SECTION 43B I.E., PRIOR TO FILING OF RETURN UNDER SECTION 139(1) HELD, YES ASSESSEE STATE TRANSPORT CORPO RATION COLLECTED A SUM BEING PROVIDENT FUND CONTRIBUTION FROM ITS EMPL OYEES HOWEVER, IT HAD DEPOSITED LESSER SUM IN PROVIDENT FUND ACCOUNT ASSESSING OFFICER DISALLOWED SAME UNDER SECTION 43B HOWEVER, COMMIS SIONER (APPEALS) DELETED DISALLOWANCE ON GROUND THAT EMPLOYEES CONTR IBUTION WAS DEPOSITED BEFORE FILING RETURN WHETHER SINCE ASSE SSEE HAD NOT DEPOSITED SAID CONTRIBUTION IN RESPECTIVE FUND ACCO UNT ON DATE AS PRESCRIBED IN EXPLANATION TO SECTION 36(1)(VA), DIS ALLOWANCE MADE BY ASSESSING OFFICER WAS JUST AND PROPER HELD, YES [ PARA 8] [IN FAVOUR OF REVENUE] 6. RESPECTFULLY FOLLOWING THE JUDGMENT OF THE JURIS DICTIONAL HIGH COURT THE DISALLOWANCE MADE BY THE AO IS UPHELD AND WE DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE LEARNED CIT(A) . THEREFORE, WE DISMISS THE APPEAL. ITA NO.2157/AHD /2016 ONEIRO CHEMICALS LTD. VS. ITO ASST.YEAR 2012-13 - 4 - 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS D ISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 22 / 09 /201 7 SD/- SD/- VEJTHR FLAG VEJTHR FLAG VEJTHR FLAG VEJTHR FLAG &' $ ( $ ) ()* $ ) ( AMARJIT SINGH ) ( MAHAVIR PR ASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 22/09/2017 !'# $#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. , -. / / CONCERNED CIT 4. / () / THE CIT(A)-2, VADODARA. 5. 012 **-. , -.# , '&$,$ / DR, ITAT, AHMEDABAD 6. 245 6 / GUARD FILE. % & / BY ORDER, 0 * //TRUE COPY// '/& () ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD TRUE COPY 1. DATE OF DICTATION 20/09/2017 (DICTATION-PAD 2 PA GES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21/09/2017 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER