Bray Controls India Pvt. Ltd, Vadodara V. ACIT, Circle-1(1)(1), Vadodara

ITA 248/AHD/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5073 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 19-02-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R P MAKWANA
• Assessee Lawyers: TALATI; SULABH SHAH FROM TALATI

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ ITA NO. 248/AHD/2019 / ASSESSMENT YEAR: 2014-15 BRAY CONTROLS INDIA P.LTD. 14, ALINDRA, SAVLI GIDC, VADODARA 391 775. PAN : AADCB 8370 N VS ACIT, CIR.1(1)(1) VADODARA. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI SULABH SHAH FROM TALATI & TALATI, AR REVENUE BY : SHRI R.P. MAKWANA, SR.DR / DATE OF HEARING : 14/09/2021 /DATE OF PRONOUNCEMENT : 28/ 09/2021 O R D E R PER RAJPAL YADAV, VICE-PRESIDENT: ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST ORDER OF THE LD.CIT(A)-1, VADO DARA DATED 7.1.2019 PASSED FOR THE ASSTT.YEAR 2014-15. 2. IN THE GROUNDS OF APPEAL, SOLE ISSUE INVOLVED IS THAT THE LD.CIT(A) HAS ERRED IN CONFIRMING DISALLOWANCE OF EMPLOYEES C ONTRIBUTION TOWARDS PF AMOUNTING TO RS.21,75,399/- WHICH WAS DI SALLOWED BY THE AO UNDER SECTION 36(1)(VA) R.W.S. 2(24)(X) OF THE I NCOME TAX ACT, 1961. 3. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, W E HAVE GONE THROUGH THE RECORD CAREFULLY. IT MERGES OUT FROM T HE RECORD THAT THE ITA NO.248/AHD/2019 - 2 - ASSESSEE HAS FILED ITS RETURN OF INCOME ON 24.11.20 14 DECLARING TOTAL LOSS INCOME AT RS.6,24,28,315/-. NOTICE UNDER SECTION 1 43(2) WAS ISSUED AND SERVED UPON THE ASSESSEE FOR SCRUTINY ASSESSMENT. O N SCRUTINY OF THE ACCOUNTS, IT REVEALED TO THE AO FROM THE AUDITORS OF THE ASSESSEE- COMPANY HAVE CERTIFIED THAT EMPLOYEES CONTRIBUTION TO P.F. OF RS18,22,401/- WERE PAID BEYOND THE DUE DATE SPECIFI ED UNDER THE RELEVANT ACT. THE LD.AO HAS REPRODUCED ACCOUNTS OF SUCH CONTRIBUTION MADE BY THE EMPLOYEES SHOWING ACTUAL PAYMENT, DUE D ATE OF PAYMENT, ACTUAL DATE OF PAYMENT. SUCH DETAILS ARE REPRODUCE D IN PARA 5 OF THE ASSESSMENT ORDER, WHICH ACTUALLY CAME AROUND RS.21, 75,399/-. SINCE THE ASSESSEE HAS MADE PAYMENT AFTER THE DUE DATE OF PAY MENT, THE LD.AO ISSUED SHOW CAUSE NOTICE AS TO WHY THE AMOUNT OF LA TE PAYMENT OF PF SHOULD NOT BE DISALLOWED AND ADDED BACK TO THE INCO ME OF THE ASSESSEE. SINCE NO SATISFACTORY EXPLANATION WAS GIVEN BY THE ASSESSEE, THE LD.AO FOLLOWING JUDGMENT OF HONBLE JURISDICTIONAL HIGH C OURT IN THE CASE OF GUJARAT STATE ROAD TRANSPORT CORPN VS. CIT, 366 ITR 170 DISALLOWED THIS AMOUNT AND ADDED AN AMOUNT OF RS.21,75,399/- TO THE TOTAL INCOME OF THE ASSESSEE. THE FIRST APPELLATE AUTHORITY CONFIR MED THE SAME WITH DIRECTION TO VERIFY WHETHER ANY OF PAYMENTS MADE BY THE ASSESSEE TOWARDS EMPLOYEES CONTRIBUTION OF PROVIDENT FUND F ALLS WITHIN THE GRACE PERIOD OR NOT; AND IF SO, THEN THE SAME SHOUL D BE ALLOWED. DISSATISFIED WITH THE ORDER OF THE LD.CIT(A), THE A SSESSEE IS NOW BEFORE THE TRIBUNAL. 4. WE HAVE PERUSED THESE DETAILS OF PAYMENT RECORDE D BY THE AO IN THE ASSESSMENT ORDER AND DETAILS REPRODUCED BY THE LD.CIT(A) IN THE IMPUGNED ORDER. THE AO HAS SPECIFICALLY HELD THAT THESE WERE NOT PAID WITHIN DUE DATE PROVIDED IN THE PF AND ESI ACTS, TH EREFORE, HE ITA NO.248/AHD/2019 - 3 - DISALLOWED IT. THE LD.CIT(A) HAS NOTICED SOME MISM ATCH IN THIS ORDER AND WHILE CONFIRMING ORDER OF THE AO ON THE BASIS O F JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT CITED (SUPRA), DI RECTED THE AO TO VERIFY DATE OF PAYMENT TAKING INTO CONSIDERATION GR ACE PERIOD ALLOWABLE UNDER THE ACT. IF THE PAYMENT WAS MADE WITHIN THE DUE DATE INCLUDING THE GRACE PERIOD, THEN CLAIM OF THE ASSESSEE SHOULD BE ALLOWED TO THAT EXTENT, AND THE BALANCE AMOUNT STAND DISALLOWED UND ER SECTION 36(1)(VA) OF THE ACT. SINCE ORDER OF THE LD.CIT(A) WAS IN AC CORDANCE WITH JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT, WE D O NOT FIND ANY INFIRMITY IN ORDER OF THE LD.CIT(A), THE SAME IS AC CORDINGLY UPHELD, AND GROUNDS OF APPEAL OF THE ASSESSEE ARE REJECTED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 28 TH SEPTEMBER, 2021. SD/- SD/- (WASEEM AHMED) ACCOUNTANT MEMBER (RAJPAL YADAV) VICE-PRESIDENT AHMEDABAD; DATED, 28/09/2021