Kaavian Systems Private Limited, CHENNAI V. ITO Corporate Ward 4(1), CHENNAI

ITA 2899/CHNY/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8113 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 29-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HOMI RAJVANSH
• Assessee Lawyers: PV DILIP KUMAR
• Keywords: Question of law
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , , ' BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 2899/CHNY/2017 / ASSESSMENT YEAR : 2014-15 KAAVIAN SYSTEMS PVT LTD., KHIVRAJ COMPLEX 3, FIRST FLOOR, 480 ANNA SALAI, NANDANAM, CHENNAI 600 035. [PAN: AACCK 0149B] VS. THE INCOME TAX OFFICER, CORPORATE WARD -4(1), CHENNAI. ( / APPELLANT) ( #$& /RESPONDENT ) ASSESSEE BY : SHRI. PV DILIP KUMAR, CA REVENUE BY : SHRI. HOMI RAJVANSH, CIT 0 /DATE OF HEARING : 20.12.2018 0 /DATE OF PRONOUNCEMENT : 26.12.2018 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-8, CHENNAI IN ITA NO. 430/16- 17 DATED 21.09.2017 FOR ASSESSMENT YEAR 2014-15. :-2-: ITA NO.2899/CHNY/2017 2. WHILE MAKING THE ASSESSMENT FOR ASSESSMENT YEAR 2014-15, IN THE ASSESSEES CASE, M/S. KAAVIAN SYSTEMS PVT LTD., THE ASSESSING OFFICER FOUND FROM THE FORM 3CD ATTACHED WITH THE R ETURN THAT THE EMPLOYEES CONTRIBUTION TO PF WERE PAID BEYOND THE D UE DATE SPECIFIED UNDER THE RELEVANT ACT, ALTHOUGH, ALL SUCH PAYMENTS WERE MADE BEFORE THE DUE DATE FOR FILING THE RETURN U/S. 139(1). HE DISALLOWED THEM HOLDING THAT ONLY EMPLOYERS CONTRIBUTION TOWARDS PF IS ELIGIBLE IF IT WAS PAID BEFORE THE DUE DATE OF FILING THE RETURN OF IN COME U/S. 139(1), BUT NOT IN THE CASE OF EMPLOYEES CONTRIBUTION. HENCE, HE ASSESSED THEM U/S. 36(VA) R.W. 2(24)(X). AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) AND THE CIT(A) DISMISSED THE APPE AL. AGGRIEVED AGAINST THE ORDER OF THE CIT(A), THE ASSESSEE FILED THIS APPEAL. 3. WE HEARD THE RIVAL CONTENTIONS AND GONE THROUGH THE RELEVANT MATERIAL. THE FACT REMAINS THAT THE ASSESSEE HAS P AID THE EMPLOYEES CONTRIBUTION TO PF & ESI WITHIN THE DUE DATE PERMIT TED UNDER INCOME TAX ACT BEFORE FILING THE RETURN, ALTHOUGH, IT WAS NOT PAID WITHIN THE DUE DATES PERMITTED UNDER THE RESPECTIVE ACT. T HE RELEVANT PORTION OF THE JURISDICTIONAL HIGH COURT DECISION IN THE CASE OF C IT VS INDUSTRIAL SECURITY & INTELLIGENCE PVT LTD., IN TCA NO. 585 & 586 OF 2015 DATED 24.07.2015 IS EXTRACTED AS UNDER: 5. WE FIND THAT THE TRIBUNAL HAS RIGHTLY RELIED ON THE DECISION OF THE SUPREME COURT IN THE CASE OF CIT VS ALUM EXTRUSIONS LTD. REPORTED IN 319 HR :-3-: ITA NO.2899/CHNY/2017 306, WHEREBY, THE SUPREME COURT HELD THAT OMISSION O F SECOND PROVISO TO SECTION 43B AND AMENDMENT TO FIRST PROVISO BY FINANC E ACT, 2003 ARE CURATIVE IN NATURE AND ARE EFFECTIVE RETROSPECTIVELY I.E WITH EFFECT FROM 1.4. 1 988 I.E. THE DATE OF INSERT FORT OF FIRST PROVISO. THE DELHI HIGH COURT IN THE CASE OF CIT V AMIL LTD. REPORTED IN 321 ITR 508 HEL D THAT IF THE ASSESSEE HAD DEPOSITED EMPLOYEES CONTRIBUTION TOWARDS PROVIDENT FUND AND ESI AFTER DUE DATES AS PRESCRIBED UNDER THE RELEVANT ACT, BUT BEF ORE THE DUE DATE OF FILING OF RETURN UNDER THE INCOME TAX ACT, NO DISALLOWANCE COULD BE MADE IN VIEW OF THE PROVISIONS OF SECTION 43.B AS AMENDED BY FINAN CE ACT, 2003. 6. IN THE PRESENT CASE, THE ASSESSEE HAD REMITTED T HE EMPLOYEES CONTRIBUTION BEYOND THE DUE DATE FOR PAYMENT, BUT W ITHIN THE DUE DATE FOR FILING THE RETURN OF INCOME. HENCE, FOLLOWING THE ABO VE SAID DECISION, WE FIND NO REASON, TO DIFFER WITH THE FINDINGS OF THE TRIBUNAL . ACCORDINGLY, WE FIND NO QUESTION OF LAW MUCH LESS ANY SUBSTANTIAL QUESTION OF LAW ARISES FOR CONSIDERATION IN THESE APPEALS. ACCORDINGLY, BOTH T HE TAX CASE (APPEALS) STAND DISMISSED. NO COSTS. CONSEQUENTLY, M.P.NO.1 O F2015 IS ALSO DISMISSED. ACCORDINGLY, WE ALLOW THE ASSESSEES APPEAL. 4. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED ON WEDNESDAY, THE 26 TH DAY OF DECEMBER, 2018 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, 5 /DATED: 26 TH DECEMBER, 2018 JPV 0#6787 /COPY TO: 1. & / APPELLANT 2. #$& /RESPONDENT 3. : ) ( /CIT(A) 4. : /CIT 5. 7# /DR 6. = /GF