SHRI NATESAN MUTHU, CHENNAI V. DCIT, CPC, BANGALORE

ITA 2721/CHNY/2019

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 9178 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Appeal Filed On: 23-09-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: M KARUNAKARAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH : CHENNAI , . , [BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ] !' ./I.T.A. NO.2721/CHNY/2019. #$% &$ / ASSESSMENT YEAR : 2018-2019. SHRI. NATESAN MUTHU, 23, SIDCO INDUSTRIAL ESTATE, AMBATTUR CHENNAI 600 098. VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CPC, BANGALORE [PAN AAIPM 4020E] ( / APPELLANT) ( /RESPONDENT) !' '( ) * / APPELLANT BY : SHRI. M. KARUNAKARAN, ADVOCATE +,'( ) * /RESPONDENT BY : SHRI. J. PAVITHRAN KUMAR, JCIT. # - ) . /DATE OF HEARING : 11-12-2019 /0&% ) . /DATE OF PRONOUNCEMENT : 12-12-2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S)-7, CHENNAI (CIT(A) FOR SHORT) DATED 25.07.2019 FOR THE ASSE SSMENT YEAR (AY) 2018-2019. ITA NO.2721 /2019 :- 2 -: 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEAL S) ERRED IN SUSTAINING THE ADJUSTMENT OF RS. 1,61,900/- MADE BY CPC WHILE PROCESSING THE RETURN UNDER SECTION 143(1). 2. THE APPELLANT SUBMITS THAT THE ADJUSTMENT OF RS. 1,61,900 REPRESENT BELATED PAYMENT OF EMPLOYEES CONTRIBUTIO N OF ES! & PF WHICH WERE REMITTED DURING THE FINANCIAL YEAR ITSELF AND MUCH BEFORE THE DUE DATE OF FILING OF THE RETURN AN D THEREFORE THE CPC IS NOT CORRECT IN ADDING THE SAME TO THE TOTAL INCOME. 3. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) IS NOT CORRECT IN RELYING ON THE SINGLE JUDGE OF THE MADRA S HIGH COURT IN THE WRIT PETITION IN THE CASE OF UNIFAC MA NAGEMENT SERVICES (INDIA) PVT LTD. WHEN THE ORDER WAS MODIFI ED IN THE WRIT APPEAL FILED IN THE VERY SAME CASE. 4. THE APPELLANT SUBMITS THAT THE BELATED PAYMENT O F ESI AND PF REPRESENTING EMPLOYEES CONTRIBUTION BEFORE THE DUE DATE OF FILING OF THE RETURN CANNOT BE DISALLOWED I N THE LIGHT OF THE DECISION OF THE MADRAS HIGH COURT IN THE CAS E OF INDUSTRIAL SECURITY & INTELLIGENCE INDIA P LTD. DAT ED 24/7/2015. 5. THE APPELLANT THEREFORE SUBMITS THAT THE ADDITIO N OF RS. 1,61,900/- MADE BY THE CPC MAY BE DELETED AND THE A PPEAL MAY BE ALLOWED. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT IS AN INDIVIDUAL. THE RETURN OF INCO ME FOR THE AY 2018-19 WAS FILED ON 20.12.2018 ADMITTING TOTAL INC OME OF F48,58,310/-. THE RETURN OF INCOME WAS PROCESSED U/S.143(1) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DECLARI NG TOTAL INCOME OF ITA NO.2721 /2019 :- 3 -: F50,20,210/-. WHILE DOING SO, THE ASSESSING OFFICE R MADE PRIME FACIE ADJUSTMENT OF F1,61,900/- BEING THE BELATED AMOUNT OF REMITTANCE OF PF/ESI. 4. BEING AGGRIEVED BY THE ABOVE ADDITIONS, THE ASSESS EE PREFERRED AN APPEAL BEFORE LD. CIT(A), WHO VIDE IMP UGNED ORDER CONFIRMED THE ACTION OF THE ASSESSING OFFICER BY P LACING RELIANCE ON THE DECISION OF HONBLE MADRAS HIGH COURT IN THE CA SE OF UNIFAC MANAGEMNT SERVICES (INDIA) PVT LTD VS. DCIT, (2018) 100 TAXMANN.COM 244 . 5. BEING AGGRIEVED, THE APPELLANT IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. 6. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE M ATERIAL ON RECORD. THE HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF CIT VS. M/S. INDUSTRIAL SECURITY &INTELLIGENCE INDIA PVT. L TD IN TC NOS.585 & 586 OF 2015, DATED 24.07.2015, HAD HELD THAT WHEN EPF/ESI CONTRIBUTION ARE MADE WITHIN DUE DATE OF FILING THE RETURN, THE SAME SHOULD BE ALLOWED AS DEDUCTION. THEREFORE, WE RESTO RE THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE WHE THER CONTRIBUTION TOWARDS EPF/ESI ARE MADE WITHIN THE DUE DATE OF FIL ING OF RETURN, IF SO, THE SAME SHOULD BE ALLOWED AS DEDUCTION. ITA NO.2721 /2019 :- 4 -: 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 12TH DAY OF DECEMBER, 2019, A T CHENNAI. SD/- SD/- ( . ! ) (DUVVURU RL REDDY) ' # /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER 1 #- / CHENNAI 2# / DATED: 12TH DECEMBER, 2019. KV 3 ) +.4 5' !6 5&. / COPY TO: 1 . !' '( / APPELLANT 3. 7. (!' ) / CIT(A) 5. 5 :; +.#< / DR 2. +,'( / RESPONDENT 4. 7. / CIT 6. ;$ =- / GF