M/s. E-Infochips Ltd., Ahmedabad V. The DCIT, Circle-2(1)(1), Ahmedabad

ITA 2268/AHD/2018

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 7894 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 15-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.S. SHUKLA
• Section: 2; 43; 48; 22

Judgement Text

, ‘C’ । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD (Convened through Virtual Court) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SMT. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./I. T. A. No s. 2 26 7 & 22 68/ A hd/ 20 18 ( Ass e ss me nt Ye ar s : 2 01 3-1 4 & 20 14 -1 5) M/s. E-Infochips Ltd. 11/A-B-Chandra Colony, Off. C . G. Road, Ah medabad / Vs. DC IT Cir cl e -2( 1) (1 ), I. T. Of f ice, N avj iv an Bu ild in g, A h med ab ad यी ल सं./जीआइआर सं./P A N / G IR N o . : A A C C S 1 3 1 0 E (अपील Appellant) . . ( य / Respondent) अपील र स /Appellant by : None य क र स /Respondent by : Shri S. S. Shukla, Sr.DR स क र D ate o f He ari ng 06/10/2021 घोष# क र /Dat e o f Pro n ou nc e men t 24/11/2021 आद श/O R D E R PER PRADIP KUMAR KEDIA - AM: Bo th c apt io ne d ap p eal s ha ve b ee n f ile d at t he i ns tan ce o f the ass es se e a gai ns t t he r es pe cti ve or d ers of the Co m m iss io ne r of Inc o me Tax ( Ap pe als )- 10 , A h med ab a d ( CI T( A)’ in s ho rt) , d at ed 24. 09 .2 01 8 & 28 . 09. 20 18 a ri si ng in th e a ss es s men t orde r dat ed 29. 03 .2 01 6 & 28 .1 2.2 01 6 pa ss ed b y the A ss es si ng Of ficer ( AO ) un der s. 14 3( 3) of the In co me Ta x A c t, 1 96 1 ( th e A ct ) c onc er ni ng A. Ys. 2 01 3- 14 & 2 01 4-1 5. I T A N o s . 2 2 6 7 & 2 2 6 8 / A h d / 1 8 [ M / s . E - I n f o c h i p s L t d . v s . D C I T ] A . Y . 2 0 1 3 - 1 4 & 2 0 1 4 - 1 5 - 2 - 2. At th e t i me of he a rin g, it i s no ted t h at all t he th re e ma tte rs cap ti on ed a bo ve a re i nte r- co nn ect ed and i nv ol ve s com mo n is su e. Acc or di ng l y, bo th mat te rs w er e he ard to get he r f or adju di ca ti on pur po se s. 3. W e s ha ll t ak e IT A No. 22 67 /A hd /2 01 8 co nc ern in g AY 2 01 3- 14 as a le ad c as e f o r a dj ud ica ti on . IT A N o. 2 26 7/ Ah d/ 20 18- A. Y. 2 01 3- 14 4. T he so li tar y i ss ue i n t he pr ese nt app ea l i s a gai ns t th e add it io n of Rs. 30 ,3 1,7 19 /- on ac co un t of lat e pa yment of Pr ov ide nt Fu nd un de r s. 36( 1) (va ) of th e I nc o me Ta x Ac t, 19 61 ( h ere in af ter ref err ed t o as " the Act ") . 5. Th e CI T( A) h as rel ie d up on t he d eci si on of the Ho n’b le Jur is di ct io nal Hi gh Co urt in th e c as e of CI T v s. Guj ar at Sta te Ro ad Tr an sp or t Co rp or a tio n 2 65 C T R 6 4 ( Gu j. ) [ 2014] and r eje ct ed th e app ea l of th e as se ss ee. 6. W h en th e mat te r was c all ed f or he a rin g, n one a ppear e d o n beh alf of the a ss es see . The ma tte r was acc or di ng l y p r oce ed ed e x pa rte . 7. The l ear ne d DR , o n t he ot he r h an d, r eli ed up on the or d er of the C IT (A ). 8. On ca ref ul pe ru sa l of ca se rec or ds , w e f ind t hat as se ss e e h as agi ta te d ad dit io n towa rd s be la te d pa yme nt of e mplo ye e s ’ con tr ib ut io n of PF un der s .3 6( 1)( va ) r . w.s .2 (2 4) of t he A c t. S ect io n 36( 1) (v a) pro vi de s f or de du cti on wh ere an y s u m r ec ei ved b y th e I T A N o s . 2 2 6 7 & 2 2 6 8 / A h d / 1 8 [ M / s . E - I n f o c h i p s L t d . v s . D C I T ] A . Y . 2 0 1 3 - 1 4 & 2 0 1 4 - 1 5 - 3 - ass es se e f ro m i ts e mp lo ye e s as co nt r ibu ti on t o an y pr ov ide nt f un d or su per an nu at io n f un d o r a n y ot he r w elf ar e f un ds fo un d set u p i s dep os it ed b y t he a s ses se e in th e re le va nt f u nd o n or bef o r e d ue d ate . 8.1 It i s not ic e d t ha t t he re i s a del a y of o ne o r t wo da y i n dep os it in g t he e m plo ye e s ’ c on tri bu ti on t o Pro vi de nt F un d b y th e e mplo ye r a ss es see wh en s ee n w it h ref ere nc e to du e date of accr ua l of sa lar y. I t is th e cas e of th e a ss es se e t ha t t he s ala r y a ls o h as b een pai d bel at ed l y an d wh en se en w ith r ef ere nce t o t he ac t ual d ate of pa yme nt of sala r y, n o de la y ha s occ urr ed i n d ep osi ti ng t he e mplo ye e s ’ co nt ri b uti on to P ro vi de nt Fu nd . Th us , th e as ses se e ha s tri ed to de mo ns tr a te b ef or e t he CI T( A) tha t Rs .3 0,31, 7 19/ - ( A. Y. 20 13- 14 ) & R s. 38, 75, 05 0/ - (A .Y . 20 1 4-1 5) t ow ar ds c on t rib ut io n of the e mpl o ye e s t o the P F h as be en de po sit ed b y th e as ses se e- e mplo ye r bef o re t h e ‘du e da te ’ in te r ms of in ter pr et ati o n ren de re d b y th e dec is io n o f the IT AT i n th e c as e of Ka no i Pa per a nd Ind us tr ie s Lt d. v s. AC IT (75 T TJ 4 48 ). We o bs erv e th at t he de ci si on of th e Ho n’b le G uja ra t Hig h Co ur t do es n ot ap pl y where t he pa yme nt h as bee n ma de o n or b ef ore the d ue da te . Th e ded uc ti on un der s .3 6( 1)( va ) i n s uc h ca se is a va il abl e wi th ou t a n y f e tte rs . 8.2 At th is j un ct ure , it ma y b e p er t ine nt t o ob ser ve th at dis al lo wa nc e un de r s.4 3B r. w.s . 3 6( 1) (va ) of th e Act i n res pe ct of no n-p a yme nt of p rov id en t f un d et c. wi th in th e du e date i s n ot int en de d t o co ve r gen ui ne a nd ro ut in e c as es on l ate p a ym e nt b ut onl y t h ose w he re t he e mpl o ye r has mis- ut il ize d the f un d s c oll ec te d f ro m th e as ses se e. 8.3 The a dd it io n/ di sal l ow anc e un de r s. 43 B of th e Act f o r suc h del a y of bare on e or t wo da ys i n de po si tin g t he e mplo ye e s ’ pro vi de nt f un d wo u ld th us b e wh ol l y d isp ro po rt io na te to t he def a ul t co mmi tt ed , if an y. T hu s, se en f ro m a n y a ngl e, t he I T A N o s . 2 2 6 7 & 2 2 6 8 / A h d / 1 8 [ M / s . E - I n f o c h i p s L t d . v s . D C I T ] A . Y . 2 0 1 3 - 1 4 & 2 0 1 4 - 1 5 - 4 - add it io n/ di sal lo wa n ce u nd er s . 3 6( 1)( v a) r .w .s. 2( 24 )( x) of the Act is no t ju st if ied i n t he in st an t c as e. 9. In t he r es ul t, t he cap ti on ed a pp ea l f ile d b y th e a sse ss ee i s all ow ed . IT A N o. 2 26 8/ Ah d/ 20 18- A. Y. 2 01 4- 15 10. The i ss ue of addi ti on/ di sa ll ow an ce u n der s .4 3B a mou nt i ng t o Rs .3 0,3 1, 71 9/ - f ur t her en ha nc ed to Rs .38 ,7 5, 05 0/ - by t he CI T( A) is on t he si mi la r f oo t ing . T hu s, in pa ri t y wit h t he re as on i ng s n ote d abo ve , t he a dd iti o n /di sa ll ow an ce u nd e r s. 43 B r. w. s. 36 (1) (va ) r. w. s. 2(2 4) (x ) of th e A ct is d ire ct ed to b e d ele te d b y t he AO . The o rd e r of th e CI T( A) i s t hu s s et a si de a nd t he ad di ti on mad e b y th e AO sta nd s re ver se d. 11. In th e res ul t, t he ca pti on ed a pp eal of t he as sess ee is a ll o we d. 12. In t he c o mb ine d r e sul t, bo th c ap ti on e d ap pe al of ass es se e ar e all ow ed . Sd/- Sd/- (MADHUMI TA R OY) (PRADIP KUM AR KEDIA) JUDICI AL MEM BER ACC OUNTANT MEM BER A h m e d a b a d : D a t e d 2 4 / 1 1 / 2 0 2 1 True Copy S. K. SINHA ेश ! " #े" / Copy of Order Forwarded to:- &. र ज / Revenue 2. आ दक / Assessee (. सं)ं*+ आयकर आय , / Concerned CIT 4. आयकर आय , - अपील / CIT (A) This Order pronounced in Open Court on 24/11/2021 I T A N o s . 2 2 6 7 & 2 2 6 8 / A h d / 1 8 [ M / s . E - I n f o c h i p s L t d . v s . D C I T ] A . Y . 2 0 1 3 - 1 4 & 2 0 1 4 - 1 5 - 5 - /. 0 1 2ीय 3 3 *+4 आयकर अपील य अ*+कर#4 अ56द ) द / DR, ITAT, Ahmedabad 7. 2 89 : इल / Guard file. By order/आद श स 4 उप/स5 यक पंजीक र आयकर अपील य अ*+कर#4 अ56द ) द ।