M/s. Mohan Jute Bags Mfg. Co., Karnataka V. DCIT, C ircle- 35, Kolkata, Kolkata

ITA 2231/KOL/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75076 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2014
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 30-05-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 20-12-2010
• Court: TRIBUNAL
• Department Lawyers: APURBA KR DAS
• Assessee Lawyers: N O N E
• Section: 43B; 143(3); 80HHC; 234B; 263

Judgement Text

, B , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA () BEFORE , /AND . . . . ' '' ''# '#'# '#, $% ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI ABRAHAM P. GEORGE, AM] & & & & / I.T.A NO. 2231/KOL/2010 '( )* '( )* '( )* '( )*/ // / ASSESSMENT YEAR: 2003-04 M/S. MOHAN JUTE BAGS MFG. CO. VS. DEPUTY COMMISS IONER OF INCOME-TAX, (PAN:AAFFM3412R) CIRCLE-35, KOLKATA. (,- /APPELLANT ) (./,-/ RESPONDENT ) DATE OF HEARING: 05.02.2014 DATE OF PRONOUNCEMENT: 13.02.2014 FOR THE APPELLANT: N O N E FOR THE RESPONDENT: SHRI APURBA KR. DAS, JCIT, D R $0 / ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XX, KOLKATA IN APPEAL NO. 54/CIT(A)-XX/CIRCLE-35/08-09/KOL DATED 26.10.2010. ASSESSMENT WAS FRAMED BY DCIT, CIRCLE-35, KOLKATA U/S. 263 R.W.S. 143(3) OF THE IN COME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2003-04 VIDE HIS ORD ER DATED 01.07.2008. 2. THE FIRST ISSUE IN THIS APPEAL OF ASSESSEE IS AG AINST THE ORDER OF CIT(A) CONFIRMING THE DISALLOWANCE OF DEDUCTION OF PAYMENT OF EMPLOYERS AND EMPLOYEES CONTRIBUTION TO PF AND ESI. FOR THIS, ASSESSEE HAS RAISED FOLLOWING GROUN D NO.1: 1. THAT THE HONBLE CIT WAS WRONG AND UNJUSTIFIED IN CONFIRMING THE DISALLOWANCE FOR RS.1,04,954/- ON ACCOUNT OF DELAYED PAYMENT OF EMPL OYERS AND EMPLOYEES CONTRIBUTION TO PF & ESI AND TIMELY PAYMENT OF RS.83,601/-. 3. WE HAVE HEARD LD. DR AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE AO DURING THE COURSE OF ASSESSMENT PROCEED INGS MADE DISALLOWANCE OF DEDUCTION OF RS.1,04,954/- BEING PAYMENTS MADE TO EMPLOYERS AND EMPLOYEES CONTRIBUTION TO PF & ESI AS THE SAME WAS PAID BEYOND THE DUE DATE OF THE RESPEC TIVE STATUTE AND ACCORDING TO THE AO, THE SAME ARE DELAYED PAYMENTS AND ARE NOT ALLOWABLE IN VIEW OF THE PROVISIONS OF SECTION 43B OF THE ACT. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFO RE CIT(A), WHO ALSO CONFIRMED THE ACTION OF AO. FURTHER AGGRIEVED, ASSESSEE PREFERRED APPEAL B EFORE US. WE FIND THAT THE ASSESSEE ITSELF HAS CONCEDED THE DISALLOWANCE TO THE EXTENT OF RS.2 1,353/- BEING NOT PAID EVEN DURING THE NEXT ACCOUNTING YEAR. IT WAS THE CONTENTION OF THE ASSE SSEE BEFORE THE CIT(A) AND BEFORE AO THAT 2 ITA NO.2231/K/2010 M/S. MOHAN JUTE BAGS MFG. CO. , AY:2003-04 THE AMOUNT OF RS.83,601/- WAS PAID ON OR BEFORE THE DUE DATE OF FILING OF RETURN U/S. 139(1) OF THE ACT. THE DATES ARE NOT AVAILABLE BEFORE US. I N SUCH CIRCUMSTANCES, WE DIRECT THE AO TO VERIFY THE DATES OF PAYMENTS ON ACCOUNT OF EMPLOYER S AND EMPLOYEES CONTRIBUTION TO PF & ESI TO THE EXTENT OF RS.83,601/- AND IN CASE THESE ARE PAID WITHIN THE DUE DATE OF FILING OF RETURN OF INCOME U/S. 139(1) OF THE ACT, THE AO MAY ALLOW THE SAME. THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HONBLE J URISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. M/S. VIJAY SHREE LIMITED VIDE ITAT NO. 245 OF 2 011 IN GA NO.2607 OF 2011 DATED 7 TH SEPTEMBER, 2011. THIS GROUND OF APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. THE NEXT ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) CONFIRMING THE DISALLOWANCE OF DEDUCTION U/S. 80HHC OF THE ACT. F OR THIS, ASSESSEE HAS RAISED FOLLOWING GROUND NO.2: THAT THE HONBLE CIT WAS WRONG AND UNJUSTIFIED IN CONFIRMING THE DEDUCTION U/S. 80HHC BY RS.2,51,613/-. 5. WE HAVE HEARD LD. DR AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE AO MADE DISALLOWANCE OF DEDUCTION U/S. 80H HC OF THE ACT TO THE EXTENT OF RS.2,51,693/- FOR THE REASON THAT THE ASSESSEE FAIL ED TO PRODUCE THE CERTIFICATE DURING THE COURSE OF ASSESSMENT PROCEEDINGS AS REQUIRED U/S. 80HHC(4A )(B) OF THE ACT. THE CIT(A) ALSO CONFIRMED THE ACTION OF AO. AGGRIEVED AGAINST THE ORDER OF CIT(A) ASSESSEE IS IN APPEAL BEFORE US. WE FIND THAT THE AO ADMITTED THAT THE A SSESSEE HAS ONLY PRODUCED THE COPY OF CERTIFICATE, WHICH IS ENCLOSED WITH THE RETURN OF I NCOME. AS THE ASSESSEE FAILED TO PRODUCE THE CERTIFICATE, WE ALLOW ONE MORE OPPORTUNITY TO THE A SSESSEE TO FILE THE SAME BEFORE THE AO AND AO WILL CONSIDER THE SAME AND DECIDE THE CLAIM OF T HE ASSESSEE. WE DIRECT THE AO ACCORDINGLY. THIS GROUND OF APPEAL OF ASSESSEE IS ALLOWED FOR ST ATISTICAL PURPOSES. 6. THE NEXT ISSUE IN THIS APPEAL OF ASSESSEE IS REG ARDING CHARGING OF INTEREST U/S. 234A, 234B AND 234C OF THE ACT. WE FIND THAT THIS IS A C ONSEQUENTIAL ISSUE AND THE AO WILL CHARGE CONSEQUENTIAL INTEREST ACCORDING TO LAW AND THE PRO VISIONS OF THE ACT. THIS ISSUE OF ASSESSEES APPEAL IS DISMISSED. 7. IN THE RESULT, APPEAL OF ASSESSEE IS PARTLY ALL OWED FOR STATISTICAL PURPOSES. 8. ORDER IS PRONOUNCED IN THE OPEN COURT ON 13 TH FEB., 2014 SD/- SD/- . . . . ' '' ''# '#'# '# , $% , (ABRAHAM P. GEORGE) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 13TH FEBRUARY, 2014 12 '3' 4 JD.(SR.P.S.) 3 ITA NO.2231/K/2010 M/S. MOHAN JUTE BAGS MFG. CO. , AY:2003-04 $0 5 . 6$ )7- COPY OF THE ORDER FORWARDED TO: 1 . ,- / APPELLANT M/S. MOHAN JUTE BAGS MFG. CO., 5/1, CLI VE ROW, 5 TH FLOOR, KOLKATA-700 001. 2 ./,- / RESPONDENT DCIT, CIRCLE-35, KOLKATA 3 . 0' ( )/ THE CIT(A), KOLKATA 4. 5. 0' / CIT KOLKATA <= .' / DR, KOLKATA BENCHES, KOLKATA / ./ TRUE COPY, $0'>/ BY ORDER, ' /ASSTT. REGISTRAR .