DCIT, New Delhi V. M/s. SPL Industries Ltd., New Delhi

ITA 3068/DEL/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 6709 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 26-08-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 18-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P SINGH
• Assessee Lawyers: V K GARG
• Section: 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO.3068/DEL/2010 ASSESSMENT YEAR : 2006-07 DCIT, CIRCLE 9(1), ROOM NO.163, CR BUILDING, NEW DELHI. VS. M/S SPL INDUSTRIES LTD., 5/66, 3 RD FLOOR, P.S. ROAD, KAROL BAGH, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V.K. GARG, CA REVENUE BY : SHRI R.P. SINGH, DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE. IT IS DIRECT ED AGAINST THE ORDER OF THE CIT (A) DATED 12 TH FEBRUARY, 2010 FOR ASSESSMENT YEAR 2006-07. GROUNDS OF APPEAL READ AS UNDER:- 1. LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN LAW AND ON THE FACTS AND CIRCUMSTANCES OF THE CASE, IN DIRECTING THE A.O. TO RECALCULATE THE QUANTUM OF DISALLOWANCE IN RESPECT OF DISALLOWANCE OF RS.1,43,72,688/- MADE BY THE A.O. ON ACCOUNT OF LATE PAYMENT OF PF & ESI, AFTER ALLOWING THE BENEFIT OF GRACE PERIOD. 2. THE APPELLANT CRAVES TO AMEND MODIFY, ALTER, ADD OR FOREGO ANY GROUND OF APPEAL AT ANY TIME BEFORE O R DURING THE HEARING OF THIS APPEAL. 2. AN ADDITION OF ` 1,43,72,688/- WAS MADE AS THE ASSESSE E DID NOT PAY THE PF/ESI OUT OF EMPLOYEES CONTRIBUTIONS WITHIN THE STIPULATED ITA NO.3068/DEL/2010 2 PERIOD ALLOWED UNDER THE RESPECTIVE ACTS. THE DETAIL S OF ALL THESE PAYMENTS ARE MENTIONED AT PAGES 5, 6, 7 AND 8 OF THE ORDER OF THE CIT (A). IT IS OBSERVED FROM THE SAID DETAILS THAT THE LAT EST PAYMENTS MADE BY THE ASSESSEE IN RESPECT OF ALL THESE AMOUNTS IS 17 TH APRIL, 2006 I.E., WELL WITHIN THE DUE DATE FOR FILING THE INCOME-TAX RETURN FOR THE RELEVANT FINANCIAL YEAR WHICH IS 30 TH NOVEMBER, 2007. LD. CIT (A) HAS DELETED THE SAID ADDITION ON THE BASIS OF DECISIONS OF DELHI TRI BUNAL IN THE CASE OF KUBER HINGES PVT. LTD. VS. ITO 120 DTR 461 (DEL), CIT VS. SABRI ENTERPRISES 213 CTR 609, CIT VS. VINAY CEMENT 213 CTR 268 AND DCIT VS. PARRY AGRO INDUSTRIES 314 ITR 181. 3. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. AS PER TABLE ENUNCIATED IN THE ORDER OF THE CIT (A) AT PAGES 5 TO 8, IT IS FOUND THAT NONE OF THE PAYMENTS HAVE BEEN MADE BY THE ASSESSEE BEYO ND THE DUE DATE OF FILING THE RETURN U/S 139 (1). IN THIS V IEW OF THE SITUATION, WE FIND THAT THE ISSUE RAISED IN THE PRESENT APPEAL BY THE REVENUE IS COVERED AGAINST THE REVENUE BY THE DECISION OF HONBL E SUPREME COURT IN THE CASE CIT VS. ALOME EXTRUSIONS LTD. 319 ITR 306 W HEREIN IT HAS BEEN HELD THAT THE AMENDMENT BROUGHT INTO THE STATUT E BY FINANCE ACT, 2003 IS RETROSPECTIVE IN OPERATION, HENCE, NO DI SALLOWANCE COULD BE MADE IN RESPECT OF SUCH PAYMENTS IF THE PAYMENTS ARE MADE BEFORE THE DUE DATE OF FILING THE RETURN U/S 139(1). IN TH IS VIEW OF THE SITUATION, RESPECTFULLY FOLLOWING THE AFOREMENTIONED DECISION OF HONBLE SUPREME COURT, WE FIND NO INFIRMITY IN THE DELETION MADE BY THE CIT (A) WITH RESPECT TO THE IMPUGNED ADDITION. WE DECLINE T O INTERFERE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . THE ORDER PRONOUNCED IN THE OPEN COURT ON 26.11.20 10. [SHAMIM YAHYA] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED,26.11.2010. ITA NO.3068/DEL/2010 3 DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES