MUSKAN HOSPITAL &RSEARVH CENTRE , BOKARO V. DCIT CIRCLE-3 , BOKARO

ITA 241/RAN/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0394 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 12-09-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTY
• Assessee Lawyers: NITIN PASARI
• Section: 43B

Judgement Text

P A G E 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 241 / RAN /201 7 ASSESSMENT YEAR : 2014 - 15 M/S. MUSKAN HOSPITAL & RESEARCH CENTRE, RAM NAGAR COLONY, CHAS, BOKARO STEEL CITY, JHARKHAND VS. DCIT, CIRCLE - 3, BOKARO PAN/GIR NO. AAMFM 6523 E (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI NITIN PASARI, ADV REVENUE BY : SHRI A.K.MOHANTY, JCIT DATE OF HEARING : 26 / 11 / 2018 DATE OF PRONOUNCEMENT : 26 / 11 / 2018 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), HAZARIBAG , D ATED 20.6.2017 FOR THE ASSESSMENT YEAR 2014 - 15. 2. IN GROUND NO.A & B OF THE APPEAL, THE GRIEVANCE OF THE ASSESSEE IS THAT THE CIT(A) WAS NOT WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION MADE TOWARDS EPF AND ESIC ON THE GROUND THAT THE SAME WAS NOT DEPOSITED WITHIN THE DUE DATE PRESCRIBED UNDER THE RESPECTIVE ACT.. ITA NO.241/RAN/2017 ASSESSMENT YEAR : 2014 - 15 : P A G E 2 | 4 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS NOT DEPOSITED EMPLOYEES CONTRIBUTION TO PROVIDENT FUND OF RS.6,50,138/ - AND EMPLOYEES CONTRIBUTION TO ESIC OF RS.1,05,924/ - WITHIN THE DUE DATE PRESCRIBED UNDER THE RE SPECTIVE ACT, THEREFORE, HE ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE U/S.36(1)(VA) OF THE ACT. 4 . ON APPEAL THE CIT(A) CONFIRMED THE ACTION OF ASSESSING OFFICER AS THERE WAS NO COMPLIANCE FROM THE SIDE OF THE ASSESSE. 5 . BEFORE ME , THE A.R OF THE ASSESSEE SUBMITTED THAT IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF RAJASTHAN STATE BEVERAGES CORPORATION LTD., [2017] 84 TAXMANN.COM 185 (SC), NO DISALLOWANCE OF DEDUCTION FOR EMPLOYEES CONTRIBUTION TO PF & ESIC IS TO BE MADE WHERE THE AMOUNT IS DEPOSITED BY THE ASSESSEE WITHIN THE TIME PRESCRIBED FOR FILING RETURN OF INCOME U/S.139(1) OF THE ACT. 6 . THE DR COULD NOT CONTROVERT THE ABOVE SUBMISSION OF THE AR OF THE ASSESSEE. 7 . AFTER HEARING RIVAL SUBMISSIONS AND PERUSING THE MATERIAL ON RECORD, I FIND THAT IT IS NOT IN DISPUTE THAT THE ASSESSE HAS DEPOSITED EMPLOYEES CONTRIBUTION TO PROVIDENT FUND OF RS.6,50,138/ - AND EMPLOYEES CONTRIBUTION TO ESIC OF RS.1,05,924/ - WITHIN THE DUE DATE P RESCRIBED U/S.139(1) OF THE ACT AS IS EVIDENT FROM PAGE 2 AND 3 OF THE ITA NO.241/RAN/2017 ASSESSMENT YEAR : 2014 - 15 : P A G E 3 | 4 ASSESSMENT ORDER. THE ADDITION WAS MADE ON THE GROUND THAT THE EMPLOYEES CONTRIBUTION TO PF AND ESIC WAS NOT DEPOSITED WITHIN THE TIME PRESCRIBED UNDER THE P.F.ACT. I FIND THAT NO DISALLOWANCE C AN BE MADE FOR DEDUCTION OF THE SA ME U/S.36(1)(VA) OF THE ACT IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF RAJASTHAN STATE BEVERAGES CORPORATION LTD., [2017] 84 TAXMANN.COM 185 (SC), WHERE IT WAS HELD AS UNDER : - SECTION 43B, READ WITH SECTION 36(1)(VA), OF THE INCOME - TAX ACT, 1961 - BUSINESS DISALLOWANCE - CERTAIN DEDUCTIONS TO BE ALLOWED ONLY ON ACTUAL PAYMENT (PF AND ESI CONTRIBUTION) - HIGH COURT BY IMPUGNED ORDER HELD THAT AMOUNT CLAIMED ON PAYMENT OF PF AND ESI HAVING BEEN DEPOSITED ON OR BEFORE DUE DATE OF FILING OF RETURNS, SAME COULD NOT BE DISALLOWED UNDER SECTION 43B OR UNDER SECTION 36(1)(VA) - WHETHER SLP AGAINST SAID IMPUGNED ORDER WAS TO BE DISMISSED - HELD, YES [PARA 2] [IN FAVOUR OF ASSESSEE] 8 . RESPECTFULLY FOLLOWING THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF RAJASTHAN STATE BEVERA GES CORPORATION LTD. (SUPRA), I SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DELET E THE ADDITION OF RS.6,50,138/ - TOWARDS EPF PAYMENT AND RS.1,05,924/ - TOWARDS ESI PAYMENT . 9. IN GROUND NO.C OF THE APPEAL, THE GRIEVANCE OF THE ASSESSE IS THAT THE INTEREST PAI D ON THE DELAYED DEPOSIT ALSO BEING FOLLOW UP EXPENSES ARE ALSO TO BE CONSIDERED AND ALLOWABLE AS DEDUCTION. ITA NO.241/RAN/2017 ASSESSMENT YEAR : 2014 - 15 : P A G E 4 | 4 10. NO ARGUMENTS WERE ADVANCED BY LD A.R. OF THE ASSESSE ON THIS GROUND AND, THEREFORE, SAME IS DISMISSED FOR WANT OF PROSECUTION. 11 . IN THE RESU LT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED ORDER PRONOUNCED ON 26 / 11 /2018. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 26 / 11 /2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER SR. PVT.SECRETARY, ITAT, RANCHI ON TOUR 1. THE APPELLANT : M/S. MUSKAN HOSPITAL & RESEARCH CENTRE, RAM NAGAR COLONY, CHAS, BOKARO STEEL CITY, JHARKHAND 2. THE RESPONDENT. DCIT, CIRCLE - 3, BOKARO 3. THE CIT(A) - HAZARIBAG 4. PR.CIT - HAZARIBAG 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//