Deco Mica Limited, Ahmedabad V. The Dy. Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad

ITA 2198/AHD/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5689 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 23-04-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 30-10-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43B; 139(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.2198/AHD/2018 ( / ASSESSMENT YEAR : 2015-16) DECO MICA LIMITED 306, 3 RD FLOOR ISCON MALL STAR BAZAR BUILDING JODHPUR CROSS ROAD SATELLITE AHMEDABAD-380015 / VS. THE DY.CIT CIRCLE-1(1)(2) AHMEDABAD ./ ./ PAN/GIR NO. : AAACD 8652 J ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI PARIMALSINGH B.PARMAR, AR / RESPONDENT BY : SHRI R.R. MAKWANA, SR.DR / DATE OF HEARING 20/01/2021 !'# / DATE OF PRONOUNCEMENT 19/04/2021 / O R D E R PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTAN CE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, AHMEDABAD [CIT(A) IN SHORT] DATED 20/09/2014 ARISING IN THE ASSESSMENT ORDER PASSED UNDER S.143(3) OF THE INCOME TAX ACT, 1961 (HEREINA FTER REFERRED TO AS 'THE ACT') DATED 22/11/2017 RELEVANT TO ASSESSMENT YEAR (AY) 2015-16. 2. THE ASSESSEE HAS RAISED THE FOLLOWING EFFECTIVE GROUND: ITA NO.2198/AHD/2018 DECO MICA LTD. VS. DCIT ASST.YEAR: 2015-16 -2- 1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, YOUR APPELLANT MOST RESPECTFULLY SUBMITS THAT LD.AO HAS ERRED IN LAW & ON FACTS BY MAKING ADDITION OF RS.17,77,538/- IN RESPECT OF THE EMPLOY EES CONTRIBUTION TO PROVIDENT FUND EVEN IF IT HAS BEEN VERY MUCH PAID W ITHIN THE DUE DATE AS PER PF ACT & HONBLE CIT(A) HAS FURTHER ERRED IN LA W IN CONFIRMING SUCH ADDITION, WITHOUT APPRECIATING THE FULL FACTS, AND DETAILS SUBMITTED ON RECORD AND EXPLAINED DURING THE COURSE OF HEARING. 3. FACTS OF THE CASE ARE THAT FOLLOWING EMPLOYEES PF/ESIC CONTRIBUTION ARE PAID BY THE ASSESSEE LATE, THE DETAILS OF WHICH ARE AS UNDER: NO. MONTH AMOUNT DUE DATE DATE OF PAYMENT 1. APRIL 14 1,32,947/- 20.05.2014 05.07.2014 2. MAY 14 1,37,856/- 20.06.2014 16.07.2014 3. JUNE 14 1,42,646/- 20.07.2014 20.08.2014 4. JULY 14 1,42,048/- 20.08.2014 05.09.2014 5. AUG 14 1,33,963/- 20.09.2014 04.12.2014 6. SEPT 14 1,51,831/- 20.10.2014 07.01.2015 7. OCT 14 1,54,759/- 20.11.2014 26.03.2015 8. NOV 14 1,60,532/- 20.12.2014 20.04.2015 9. DEC 14 1,58,832/- 20.01.2015 20.04.2015 10. JAN 15 1,60,033/- 20.02.2015 20.05.2015 11. FEB 15 1,49,797/- 20.03.2015 21.05.2015 12. MAR 15 1,52,294/- 20.04.2015 10.06.2015 TOTAL 17,77,538/- 3.1. THE LD.AO HELD THAT ASSESSEE OUGHT TO HAVE DEP OSITED CONTRIBUTION OF EMPLOYEES PF/ESIC CONTRIBUTION WITHIN THE TIME AS PER PF/ESIC ACT BECAUSE ASSESSEE FAILED TO DEPOSIT THE SAME WITHIN TIME. T HEREFORE, LD.AO DISALLOWED AN AMOUNT OF RS.17,77,538/- U/S.36(1)(VA) OF THE ACT. 4. THEREAFTER, ASSESSEE PREFERRED FIRST STATUTORY A PPEAL BEFORE THE LD.CIT(A), WHO CONFIRMED THE ORDER OF THE LD.AO. 5. NOW THE ASSESSEE IS IN APPEAL BEFORE US. ITA NO.2198/AHD/2018 DECO MICA LTD. VS. DCIT ASST.YEAR: 2015-16 -3- 6. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE RELEVANT RECORD AND THE IMPUGNED ORDER. WE ARE OF THE OPINION THAT CAS E OF THE ASSESSEE IS SQUARELY COVERED IN FAVOUR OF REVENUE AND AGAINST THE ASSESS EE IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORT CORPORATION (366 ITR 1 70), WHEREIN IT IS HELD AS UNDER: SECTION 43B. READ WITH SECTION 36(1)(VA) OF THE I NCOME-TAX ACT, 1961 BUSINESS DISALLOWANCE CERTAIN DEDUCTION TO BE ALL OWED ON ACTUAL PAYMENT (EMPLOYEES CONTRIBUTION) WHETHER WHERE AN EMPLOYE R HAS NOT CREDITED SUM RECEIVED BY IT AS EMPLOYEES CONTRIBUTION TO EMPLOY EES ACCOUNT IN RELEVANT FUND ON OR BEFORE DUE DATE AS PRESCRIBED IN EXPLANA TION TO SECTION 36(1)9VA), ASSESSEE SHALL NOT BE ENTITLED TO DEDUCTION OF SUCH AMOUNT THOUGH HE DEPOSITS SAME BEFORE DUE DATE PRESCRIBED UNDER SECTION 43B I .E. PRIOR TO FILING OF RETURN UNDER SECTION 139(1) HELD, YES ASSESSEE STATE T RANSPORT CORPORATION COLLECTED A SUM BEING PROVIDENT FUND CONTRIBUTION F ROM ITS EMPLOYEES HOWEVER, IT HAD DEPOSITED LESSER SUM IN PROVIDENT F UND ACCOUNT ASSESSING OFFICER DISALLOWED SAME UNDER SECTION 43B HOWEVER , COMMISSIONER (APPEALS) DELETED DISALLOWANCE ON GROUND THAT EMPLO YEES CONTRIBUTION WAS DEPOSITED BEFORE FILING RETURN WHETHER SINCE ASSE SSEE HAD NOT DEPOSITED SAID CONTRIBUTION IN RESPECTIVE FUND ACCOUNT ON DATE AS PRESCRIBED IN EXPLANATION TO SECTION 36(1)(VA), DISALLOWANCE MADE BY ASSESSING O FFICER WAS JUST AND PROPER HELD, YES [PARA 8] [IN FAVOUR OF REVENUE]. 7. IN VIEW OF THE HONBLE JURISDICTIONAL HIGH COURT S ORDER IN THE CASE OF GUJARAT STATE ROAD TRANSPORT CORPORATION(SUPRA), TH E IMPUGNED ORDER DOES NOT REQUIRE ANY KIND OF INTERFERENCE AT OUR END AND WE DISMISS THE APPEAL OF THE ASSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 19 / 04/2021 SD/- SD/- ( PRADIP KUMAR KEDIA ) ( MAHAVIR PRA SAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 19/ 04 /2021 &.. , .'../ T.C. NAIR, SR. PS ITA NO.2198/AHD/2018 DECO MICA LTD. VS. DCIT ASST.YEAR: 2015-16 -4- !'#' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ()* + / CONCERNED CIT 4. + ( ) / THE CIT(A)-1, AHMEDABAD 5. ./0 '')* , )*# , ( / DR, ITAT, AHMEDABAD 6. 034 5 / GUARD FILE. / BY ORDER, . ' //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 7.4.21 (DICTATION-PAD 4- P AGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 13.4.21 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.19.4.21 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 19,.4.21 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