DCIT Corporate Circle 1(1), CHENNAI V. Auto Tech Industries India P Ltd., CHENNAI

ITA 2848/CHNY/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7908 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 24-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR ACIT
• Assessee Lawyers: S THIRUGNANAMURTHY

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . , .. ', BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AND SHRI DUVVURU R.L.REDDY, JUDICIAL MEMBER ./ ITA NO.2848/CHNY/2017 $% % /ASSESSMENT YEAR: 2013-14 THE DY. COMMISSIONER OF- INCOME TAX, CORPORATE CIRCLE-1(1), CHENNAI-34. VS. M/S.AUTO TECH INDUSTRIES INDIA PVT. LTD., SP 114, AMBATTUR INDUSTRIAL ESTATE, AMBATTUR, CHENNAI-600 058. [PAN: AABCA 9902 B ] ( ( /APPELLANT) ( )*( /RESPONDENT) DEPARTMENT BY : MR. R.CLEMENT RAMESH KUMAR, ACIT ASSESSEE BY : MR.S.THIRUGNANAMURTHY, FCA 3 /DATE OF HEARING : 29.08.2018 3 /DATE OF PRONOUNCEMENT : 19.09.2018 / O R D E R PER DUVVURU R.L.REDDY, JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME TAX(A)-1, CHENNAI, IN ITA NO .13/CIT(A)-1/2016- 17 DATED 22.09.2017 FOR THE AY 2013-14. 2. THE ONLY EFFECTIVE GROUND RAISED BY THE REVENUE IS THAT THE LD.CIT(A) ERRED IN DELETING THE ADDITION MADE ON AC COUNT OF EMPLOYEES ITA NO.2848/CHNY/2017 :- 2 -: CONTRIBUTION ON ESI & PF WHEN THE SAME WERE NOT PAI D BY THE ASSESSEE AS AN EMPLOYER WITHIN THE DUE DATE OF PF ACT. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING AUTOMOBILE COMPONENTS. T HE ASSESSMENT U/S.143(3) HAS BEEN COMPLETED AFTER MAKING DISALLOW ANCE U/S.36(1)(VA) TO THE EXTENT OF RS.73,58,854/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO HAS NOTICED THAT THE CONTRIBUTI ON TO PF & ESI COLLECTED FROM THE EMPLOYEES HAD BEEN REMITTED BELATEDLY. T HE AO TREATED THE DELAYED PAYMENTS REPRESENTING EMPLOYEES CONTRIBUTI ON OF PF & ESI TO THE EXTENT OF RS.66,41,102/- AND RS.7,17,752/- RESPECTI VELY, AS THE INCOME OF THE ASSESSEE AND BROUGHT TO TAX U/S.2(24)(X) R.W.S. 36(1)(VA) OF THE ACT. 4. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD.CIT(A) AND CHALLENGED THE ABOVE DISALLOWANCE. AFTER CONSIDERI NG THE SUBMISSIONS OF THE ASSESSEE AND BY RELYING UPON VARIOUS CASE LAWS, THE LD.CIT(A) DELETED THE ADDITIONS AND ALLOWED THE APPEAL FILED BY THE R EVENUE. 5. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE T RIBUNAL AND CHALLENGED THE ISSUE WITH REGARD TO BELATED REMITTA NCES OF EMPLOYEES CONTRIBUTION TO PF & ESI. THE LD.DR HAS SUBMITTED THAT THE EMPLOYEES CONTRIBUTION OF ESI & PF ARE GOVERNED BY SEC.36(1)( VA) U/S.43B OF THE ACT. THEREFORE, THE ORDER PASSED BY THE LD.CIT(A) TO BE REVERSED. ON THE OTHER HAND, THE COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD.CIT(A) ITA NO.2848/CHNY/2017 :- 3 -: HAD FOLLOWED THE DECISION OF THE HONBLE JURISDICTI ONAL HIGH COURT IN THE CASE OF CIT VS. INDUSTRIAL SECURITY & INTELLIGENCE INDIA PVT. LTD. IN TCA NO.585 & 586 OF 2016 & MP NO.1 OF 2015 DATED 24.07. 2015. HE FURTHER SUBMITTED THAT THE LD.CIT(A) HELD THAT THE ASSESSEE IS ELIGIBLE TO CLAIM U/S.36(1)(VA) OF THE ACT TO AVAIL THE BENEFIT U/S.4 3B OF THE ACT. THE LD.CIT(A) RELIED UPON BY THE DECISION OF THE HONBL E JURISDICTIONAL HIGH COURT AND ALLOWED THE APPEAL. THEREFORE, THE ORDER PASSED BY THE LD.CIT(A) TO BE SUSTAINED. 6. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH TH E MATERIALS PLACED ON RECORD. 7. IN THE PRESENT CASE ON THE HAND, THE ASSESSEE FA ILED TO REMIT THE PF & ESI AMOUNTING TO RS.73,58,854/- WITHIN THE DUE DA TE UNDER PF ACT BUT THE ASSESSEE HAD REMITTED THE SAME WITHIN THE DUE D ATE OF FILING OF THE RETURN OF INCOME. THERE IS NO DISPUTE ABOUT THE AB OVE SAID CONTENTION. WE HAVE ALSO PERUSED THE RATIO LAID DOWN IN THE CAS E OF CIT VS. INDUSTRIAL SECURITY & INTELLIGENCE INDIA PVT. LTD. IN TCA NO.5 85 & 586 OF 2016 & MP NO.1 OF 2015 DATED 24.07.2015, WHEREIN, IT WAS HELD THAT THERE COULD BE NO DEEMED ADDITION U/S.36(1)(VA) R.W.S.2(24)(X) OF THE ACT IF THE IMPOUND AMOUNT PAID BEFORE THE DUE DATE OF THE FILING OF TH E RETURN. THIS TRIBUNAL HAS ALSO FOLLOWED THE ABOVE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN DECIDING THE SIMILAR ISSUE IN VARIOUS CASE S. IN VIEW OF THE ABOVE ITA NO.2848/CHNY/2017 :- 4 -: WE SUSTAINED THE ORDERS PASSED BY THE LD.CIT(A) DEL ETING THE ADDITION AND THUS THE GROUND RAISED BY THE REVENUE IS DISMISSED. 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED ON THE 19 TH DAY OF SEPTEMBER, 2018, IN CHENNAI. SD/- SD/- ( . ) ( ABRAHAM P.GEORGE ) /ACCOUNTANT MEMBER ( . . ' ) ( DUVVURU R.L. REDDY ) $ /JUDICIAL MEMBER /CHENNAI, 8 /DATED: SEPTEMBER 19, 2018. TLN 3 )$9: ;: /COPY TO: 1. ( /APPELLANT 4. < /CIT 2. )*( /RESPONDENT 5. : )$$ /DR 3. < ( ) /CIT(A) 6. % /GF