Adhaan Solution Pvt. Ltd., Ahmedabad V. The Income Tax Officer, Ward-1(1)(1), Ahmedabad

ITA 2904/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8237 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 08-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VILAS SHINDE
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ADHAAN SOLUTION PVT. LTD. A - 807, DEV AURUM, ANAND NAGAR CROSS ROAD, OPP: MADHUR HALL, PRAHLADNAGAR ROAD, AHMEDABAD PAN: AAICA5878R (APPELLANT) VS THE ITO, WARD - 1(1)(1) AHMEDABAD (RESPONDENT) REVENUE BY : S H RI VI LAS SHINDE , SR. D . R. ASSESSEE BY: S H RI TAJ SHAH , A.R. DATE OF HEARING : 22 - 02 - 2 018 DATE OF PRONOUNCEMENT : 10 - 05 - 2 018 / ORDER P ER : AMARJIT SINGH, ACCOU NTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2013 - 14 , ARIS ES FROM ORDER OF THE CIT(A) - 1 , AHM EDABAD DATED 21 - 09 - 2016 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: - 1) THAT ON FACTS AND IN LAW, THE LEARNED CIT (A) HAS GRIEVOUSLY ERRED IN CONFIRMING THE ADDITION OF RS.8,90,876/ - MADE U/S 36(1)(VA) RWS 2(24) (X) OF THE ACT, MADE TOWARDS EMPLOYEES' CONTRIBUTION TO PF/ESIC. I T A NO . 2904 / A HD/20 16 A SSESSM ENT YEAR 2013 - 14 I.T.A NO. 2904 /AHD/20 16 A.Y. 2013 - 14 PAGE NO ADHAA N SOLUTION PVT. LTD VS. ITO 2 2) THAT ON FACTS, EVIDENCE ON RECORD , AND IN LAW, THE LEARNED CIT(A) OUGHT TO HAVE DELETED THE ENTIRE DISALLOWANCE AS PRAYED FOR. 3. THE ASSESSEE HAS FILED RETURN OF INCOME DECLARING NIL INCOME ON 26 TH AUGUST, 2013. DURING THE COURSE OF SCRUTINY, THE ASSESSING OFFICER NOTICED THAT ASSES SEE HAS NOT DEPOSITED CONTRIBUTION OF PROVIDENT FUND/E SIC RECEIVED FROM THE EMPLOYEE S IN THE GOVERNMENT ACCOUNT BEFORE THE DUE DATE AS SPECIFIED IN THESE ACTS. T HEREFORE ASSESSING OFFICER HAS DISALLOWED AN AMOUNT OF RS. 8 , 90 , 876/ - AS PER PROVISION S OF SE CTI ON 2(24) (X) AND SECTION 36(I)(V A) OF THE ACT. THE DETAILS OF SUCH NON - PAYMENTS/DELAYED PAYMENTS ARE AS UNDER: - SL. NO. DUE DATE DATE OF PAYMENT AMOUNT TOTAL PF ESIC 1. 15.1.2013 28.1.2013 5,06,222 - 5,06,222 2. 21.7.12 23. 7.12 - 31,984 31,984 3. 21.7.12 25.7.12 - 35,916 31,916 4. 21.10.12 30.10.12 - 55,189 55,189 5. 21.10.12 18.5.13 - 873 873 6. 21.11.12 27.11.12 - 16,746 16,746 7. 21.11.12 5.12.12 - 77,049 77,049 8. 21.1.13 5.2.13 - 70,359 70,359 9. 21.3.13 8.4.13 - 34,685 34,685 10. 21.4.13. 30.4.13 - 58,137 58,137 11. 5.7.12 3.8.12 - 1,182 1,182 12. 15.1.13 17.1.13 - 2,328 2,328 13. 15.1.13 5.4.13 - 4,206 4,206 TOTAL 8,90,876 I.T.A NO. 2904 /AHD/20 16 A.Y. 2013 - 14 PAGE NO ADHAA N SOLUTION PVT. LTD VS. ITO 3 4. AGGRIE VED ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE BY PLACING RELIANCE IN THE CA SE OF STATE ROAD TRANSPORT CORP ORATION ( 366 ITR 170 ). 5. WE HAVE HEARD RIVAL CONTENTION AND PERUSED THE MATERIAL ON RECO RD CAREFULLY. IT IS UNDISPUTED FACT THAT ASSESSEE HAS COMMITTED DEFAULT IN DEPOSITING THE AMOUNT RECEIVED FROM EMPLOYEES TOWARDS CONTRIBUTION TO PROVIDENT FUND/ESIC IN THE GOVT. ACCOUNT BEFORE THE DUE DATE PRESCRIBED IN THE PF ACT. THE H ON BLE JURISDICTI ONAL GUJ ARAT HIGH COURT IN THE CASE OF STATE ROAD TRANSPORT CORPORATION ( 366 ITR 170 ) H ELD THAT WHERE AN EMPLOYER HAS NOT CREDITED THE S UM RECEIVED BY IT AS EMPLOYEES CONTRIBUTION TO EMPLOYEES ACCOUNT IN RELEVANT FUND ON OR BEFORE DUE DATE AS PRESCRIBED I N EXPLANATION TO SECTION 36(I)( VA) THEN THE ASSESSEE SHALL NOT BE ENTITLED TO DEDUCTION OF SUCH AMOUNT. IN VIEW OF THE ABOVE FACTS AND THE JUDICIAL FINDINGS WE ARE INCLINED WITH THE DECISION OF LD. CIT(A) . ACCOR DI NGLY, THE APPEAL OF THE ASSESSEE IS DISMIS SED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 10 - 05 - 201 8 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDA BAD : DATED 10 /05 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. I.T.A NO. 2904 /AHD/20 16 A.Y. 2013 - 14 PAGE NO ADHAA N SOLUTION PVT. LTD VS. ITO 4 BY ORDER/ , / ,