DCIT, CHENNAI V. R P Telebuy Skyshop Pvt. Ltd., CHENNAI

ITA 268/CHNY/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4733 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 30-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: B RAMAKRISHNANC A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , .. ' #$, & '( BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NOS.268 & 269/MDS/2017 * +* / ASSESSMENT YEARS : 2013-14 & 2012-13 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(2), CHENNAI - 600 034. V. M/S RP TELEBUY SKYSHOP PVT. LTD., 2 ND FLOOR, TOWER A, 2 ND MAIN ROAD, AMBATTUR INDUSTRIAL ESTATE, CHENNAI - 600 058. PAN : AADCR 4633 C (-./ APPELLANT) (/0-./ RESPONDENT) -. 1 2 / APPELLANT BY : SHRI SHIVA SRINIVAS, JCIT /0-. 1 2 / RESPONDENT BY : SH. B. RAMAKRISHNAN, CA ' 1 3& / DATE OF HEARING : 05.04.2017 45+ 1 3& / DATE OF PRONOUNCEMENT : 28.04.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: BOTH THE APPEALS OF THE REVENUE ARE DIRECTED AGA INST THE COMMON ORDER PASSED BY THE COMMISSIONER OF INCOME T AX (APPEALS) -3, CHENNAI, DATED 28.10.2016 AND PERTAIN TO ASSESSMENT YEARS 2012-13 AND 2013-14. THEREFORE, WE HEARD BOT H THE APPEALS TOGETHER AND DISPOSING OF THE SAME BY THIS COMMON O RDER. 2 I.T.A. NOS.268 & 269/MDS/17 2. SHRI SHIVA SRINIVAS, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERAT ION IS DISALLOWANCE OF EMPLOYEES CONTRIBUTION FOR BOTH TH E ASSESSMENT YEARS. THE ASSESSING OFFICER DISALLOWED A SUM OF ` 28,79,604/- FOR ASSESSMENT YEAR 2012-13 AND A SUM OF ` 43,29,942/- FOR ASSESSMENT YEAR 2013-14, BEING THE EMPLOYEES CONTR IBUTION WHICH WERE NOT DEPOSITED IN GOVERNMENT ACCOUNT WITHIN THE TIME LIMIT PROVIDED UNDER THE PROVIDENT FUND ACT. ACCORDING T O THE LD. D.R., UNDER SECTION 36(1)(VA) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'), THE EMPLOYEES CONTRIBUTION MADE TO PROVIDEN T FUND AND ESI IS ALLOWABLE IF THE SAME IS CREDITED TO THE GOVERNM ENT ACCOUNT WITHIN THE DUE DATE PROVIDED UNDER THE RESPECTIVE A CT. THEREFORE, ACCORDING TO THE LD. D.R., THE CIT(APPEALS) IS NOT JUSTIFIED IN ALLOWING THE CLAIM OF THE ASSESSEE. 3. ON THE CONTRARY, SH. B. RAMAKRISHNAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE EMPLOYEES CONTRIBUTION EVEN THOUGH WAS NOT DEPOSITED WITHIN T HE DUE DATE PROVIDED UNDER THE RESPECTIVE ACT, IT WAS ADMITTEDL Y DEPOSITED WITHIN THE DUE DATE PROVIDED FOR FILING OF RETURN O F INCOME UNDER SECTION 139(1) OF THE ACT. THEREFORE, ACCORDING TO THE LD. 3 I.T.A. NOS.268 & 269/MDS/17 REPRESENTATIVE, THE CIT(APPEALS) RIGHTLY FOLLOWING THE ORDER OF THIS TRIBUNAL IN EXPRESS PUBLICATION (MADURAI) LTD., HAS ALLOWED THE CLAIM OF THE ASSESSEE. REFERRING TO ANOTHER ORDER OF THIS TRIBUNAL IN ACIT V. EASUN PRODUCTS OF INDIA (P) LTD. IN I.T.A. NO.182/MDS/2016 DATED 19.05.2016, THE LD. REPRESENTATIVE SUBMITTED THAT THIS TRIBUNAL BY PLACING RELIANCE ON THE JUDGMENT OF MAD RAS HIGH COURT IN INDUSTRIAL SECURITY & INTELLIGENCE INDIA PVT. LT D. IN TAX CASE (APPEAL) NOS.585 AND 586 OF 2015, ALLOWED THE EMPLO YEES CONTRIBUTION WHICH WAS DEPOSITED WITHIN THE DUE DAT E PROVIDED FOR FILING OF RETURN OF INCOME UNDER SECTION 139(1) OF THE ACT. THEREFORE, ACCORDING TO THE LD. REPRESENTATIVE, THE CIT(APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS NOT IN DISPUTE THAT THE EMPLOYEES CONTRIBUTION WAS DEPOSI TED WITHIN THE DUE DATE PROVIDED FOR FILING RETURN OF INCOME UNDER SECTION 139(1) OF THE ACT. THE CONTENTION OF THE REVENUE APPEARS TO BE THAT THE EMPLOYEES CONTRIBUTION HAS TO BE DEPOSITED WITHIN THE DUE DATE PROVIDED UNDER PROVIDENT FUND ACT. THE MADRAS HIGH COURT IN INDUSTRIAL SECURITY & INTELLIGENCE INDIA PVT. LTD. (SUPRA) EXAMINED 4 I.T.A. NOS.268 & 269/MDS/17 THIS ISSUE AND AFTER REFERRING TO THE JUDGMENT OF A PEX COURT IN CIT V. ALOM EXTRUSIONS LTD. (319 ITR 306) AND DELHI HIGH C OURT IN CIT V. AMIL LTD. (321 ITR 508), FOUND THAT DEPOSIT OF EMPL OYEES CONTRIBUTION AFTER THE DUE DATE PRESCRIBED UNDER RE LEVANT ACT BUT BEFORE THE DATE OF FILING OF RETURN OF INCOME UNDER THE INCOME-TAX ACT, CANNOT BE DISALLOWED. IN VIEW OF THE JUDGMENT OF MADRAS HIGH COURT IN INDUSTRIAL SECURITY & INTELLIGENCE INDIA P VT. LTD. (SUPRA), THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE CIT( APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE. THEREFO RE, THE SAME IS CONFIRMED. 5. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE ARE DISMISSED. ORDER PRONOUNCED ON 28 TH APRIL, 2017 AT CHENNAI. SD/- SD/- ( . . ' #$ ) ( . . . ) (D.S. SUNDER SINGH) (N.R.S. GANESAN) & / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 28 TH APRIL, 2017. KRI. 5 I.T.A. NOS.268 & 269/MDS/17 1 /3#8 98+3 /COPY TO: 1. -. /APPELLANT 2. /0-. /RESPONDENT 3. ' :3 () /CIT(A)-3, CHENNAI-34 4. PRINCIPAL CIT-5, CHENNAI 5. 8; /3 /DR 6. * < /GF.