The Orissa Co-operative Milk Producers Federation Limited, Bhubaneswar V. DCIT, Circle-4(1), Bhubaneswar

ITA 257/CTK/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4316 (ITAT-CUTTACK)
• Duration Of Justice: 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 28-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PIYUSH KOLHE
• Assessee Lawyers: B K MOHAPATRA
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 257 /CTK/2017 ASSESSMENT YEAR : 201 2 - 2013 THE ORISSA STATE CO - OPERATIVE MILK PRODUCERS FEDERATION LT D ., PLOT NO.D - 2, SAHID NAGAR, BHUBANESWAR. VS. DCIT, CIRCLE 4(1), BHUBANESWAR. PAN/GIR NO. AABTT 3220 G (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI B.K.MOHAPATRA, AR REVENUE BY : SHRI P IYUSH KOLHE, , CIT DR DATE OF HEARING : 20 /0 3 / 2018 DATE OF PRONOUNCEMENT : /03/ 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 2, BHUBANESWAR DATED 6 TH MARCH, 2017 FOR THE ASSESSMENT YEAR 2012 - 13. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) ERRED IN SUSTAINING THE ADDITION OF RS.11,56,756/ - U/S.2(24)(X) R.W.S 36(1) OF THE I.T.ACT, 1961 IN RESPECT OF EMPLOYEES CONTRIBUTION TO PF. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS NOT DEPOSITED AN AMOUNT OF RS.1,36,58,901/ - TOWARDS EMPLOYEES CONTRIBUTION TO PF WITHIN THE PRESCRIBED UNDER THE PF ACT AND, THEREFORE, MADE ADDITION TO THE INCOME OF THE AS SESSEE. 2 ITA NO.257/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 4. ON APPEAL, THE CIT(A) FOUND THAT OUT OF RS.1,36,58,901/ - , AN AMOUNT OF RS.1,25,02,145/ - HAS BEEN DEPOSITED WITHIN THE GRACE PERIOD ALLOWED BY THE EMPLOYEES PROVIDENT FUND ACT AND, THEREFORE, HE DELETED THE ADDITION OF RS.1,25,02,145/ - . HOWEVER, THE CIT(A) SUSTAINED THE ADDITION OF RS.11,56,756/ - BEING THE AMOUNT PAID BEYOND THE DUE DATE. 5. BEFORE US, LD A.R. SUBMITTED THAT AS THE EMPLOYEES CONTRIBUTION IS DEPOSITED BEFORE THE DUE DATE OF FILING RETURN OF INCOME U/S.139(1), THEREFORE, SAME DESE RVES TO BE ALLOWED. 6. LD D.R. SUPPORTED THE ORDER OF THE CIT(A). 7. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER HAS DISALLOWED RS.1,36,58,901/ - U/S.2(24)(X) R.W.S 36(1)(VA) OF THE ACT TOWARDS EMPLOYEES CONTRIBUTION S TO PF AS THE SAME W ERE NOT DEPOSITED WITHIN THE DUE DATE PRESCRIBED UNDER THE ACT. 8. ON APPEAL, THE CIT(A) FOUND THAT EXCEPT AN AMOUNT OF RS.11,56,756/ - , OTHER PAYMENTS HAVE BEEN DEPOSITED WITHIN THE GRACE PERIOD AND, ACCORDINGLY, SUSTAINED THE ADDITION OF RS.11,56,756/ - . 9. ON PERUSAL OF ASSESSMENT ORDER, WE FIND THAT THE DUE DATE FOR PAYMENT OF EMPLOYEES CONTRIBUTION TO PF FOR THE MONTH OF MARCH,2012 WAS 15.4.2012 AND THE ASSESSEE HAS DEPOSITED THE AMOUNT ON 6.6.2012. HENCE, THE AMOUNT IS DEPOSITED BEFORE FILING OF THE RETURN OF INCOME U/S.139(1) OF THE ACT. WE FIND THAT THE HONBLE SUPREME COURT IN THE 3 ITA NO.257/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 CASE OF PR. CIT VS RAJASTHAN BEVERAGE CORPORATION LTD., (2017) 84 TAXMAN. COM 185 (SC), HAS HELD AS UNDER: SECTION 43B, READ WITH SECTION 36(1)(VA), OF THE INCOME TAX ACT, 1961 - BUSINESS DISALLOWANCE - CERTAIN DEDUCTION TO BE ALLOWED ONLY ON `ACTUAL PAYMENT (PF & ESI CONSTR UCTION) - HIGH COURT BY THE 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 SAI D IMPUGNED ORDER WAS TO BE DISMISSED - HELD YES (P - ARA 2) IN FAVOUR OF ASSESSEE. 10 . R ESPECTFULLY FOLLOWING THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF RAJASTHAN BEVERAGE CORPORATION LTD., (SUPRA) , WE DELETE THE ADDITION OF RS.11,56,756/ - SUSTAINED BY THE CIT(A) AND ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE. 11. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 20 /03 /2018. S D/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 20 /03/2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : THE ORISSA STATE CO - OPERATIVE MILK PRODUCERS FEDERATION LT., PLOT NO.D - 2, SAHID NAGAR, BHUBANESWAR 2. THE RESPONDENT. DCIT, CIRCLE 4(1), BHUBANESWAR. 3. THE CIT(A) - 2, BHUBANESWAR 4. PR.CIT - 2, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//