APW PRESIDENT SYSTEMS LTD, MUMBAI V. ADDL CIT 8(), MUMBAI

ITA 315/MUM/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3459 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 13-01-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: HARIGOVIND SINGH
• Assessee Lawyers: S B PRABHU

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A : MUMBAI BEFORE SHRI D.K. AGARWAL, (JM) AND SHRI RAJENDRA SINGH,(AM) ITA NO.315/MUM/2010 ASSESSMENT YEAR : 2006-07 APW PRESIDENT SYSTEMS LTD. R-2, TECHNOPOLIS KNOWLEDGE PARK MAHAKALI CAVES ROAD, ANDHERI (E) MUMBAI-93. ..( APPELLANT ) P.A. NO. (AADCA 1163 G) VS. ADDL. COMMISSIONER OF INCOME TAX RANGE -8(1) AAYAKAR BHAVAN MAHARSHI KARVE ROAD MUMBAI-20. ..( RESPONDENT ) APPELLANT BY : SHR I S.B. PRABHU RESPONDENT BY : SHRI HARI GOVIND SINGH O R D E R PER D.K. AGARWAL (JM). THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER DATED 6.11.2009 PASSED BY THE LD. CIT(A) FOR TH E ASSESSMENT YEAR 2006-07. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE COM PANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND TRADING IN ELECTRONIC PRODUCTS, FILED RETURN DECLARING TOTAL INCOME OF RS.10, 41,04,622/- . DURING THE COURSE OF THE ASSESSMENT PROCEEDING IT WAS INTERALIA OBSERVED BY THE ASSESSING OFFICER THAT CERTAIN PAYMENTS I N RESPECT OF EMPLOYEES CONTRIBUTION TO ESIC AND PF WERE MADE AFTER THE DUE DATE AT ITS BANGALORE FACILITY, THEREFORE, HE DISALLOWED RS. 1599499/- ( PF ITA NO.315/M/10 A.Y:06-07 2 RS.1532178/- + ESIC RS.67321/-) U/S. 36(1)(VA) R.W.S. 2(24)(X) OF THE INCOME TAX ACT 1961, (THE ACT). ON APPEAL, THE LD . CIT(A) HELD THAT THE APPELLANT HAS MADE PAYMENT OF PF OF RS.12,48 ,661/- WITHIN THE GRACE PERIOD OF 5 DAYS AS PER RULES, THEREFORE TO T HAT EXTENT HE ALLOWED THE SAME. HOWEVER, HE OBSERVED THAT ESIC PAYM ENT RS.67,321/- WAS MADE AFTER THE DUE DATE, HENCE, HE CONF IRMED THE DISALLOWANCE OF ESIC. 3. BEING AGGRIEVED BY THE ORDER OF THE LD. CIT(A) T HE ASSESSEE IS IN APPEAL BEFORE US CHALLENGING IN BOTH THE GROUNDS THE SUSTENANCE OF DISALLOWANCE OF PF AND ESIC. 4. AT THE TIME OF HEARING THE ASSESSEE SEEKS ADJOURNMENT ON THE GROUND THAT HIS COUNSEL IS OUT OF STATION. HOWEVER, AFT ER CONSIDERING THE FACTUAL MATRIX NOTED IN THE GROUNDS OF APPEAL, H E SUBMITS THAT THE ISSUE MAY BE SET ASIDE TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION. 5. ON THE OTHER HAND THE LD. DR WHILE RELYING ON TH E ORDER OF THE ASSESSING OFFICER AND THE LD. CIT(A) SUBMITS THAT HE HAS NO OBJECTION IF THE ISSUE IS SET ASIDE TO THE FILE OF THE ASSESSING OFFICER. 6. HAVING CAREFULLY HEARD THE SUBMISSION OF THE RIVAL PA RTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD WE FIND THA T IT WAS STATED BY THE ASSESSEE IN THE GROUNDS OF APPEAL THAT THE ACTUAL DAT E OF PAYMENT OF PF AND ESIC ARE AS UNDER :- MONTH/YEAR AMOUNT (RS.) DATE OF PAYMENT AS PER ORDER OF CIT(A) DATE OF PAYMENT AS PER BANKS CERTIFICATE ITA NO.315/M/10 A.Y:06-07 3 OBTAINED BY THE ASSESSEE JANUARY 2006 142025 (PF) 22.2.2006 14.2.2006 MARCH 2006 141492 (PF) 21.4.2006 15.4.2006 JULY 2005 11670 (ESIC) 25.8.05 19.8.2005 AUGUST 2005 14014(ESIC) 22.9.2005 17.9.2005 SEPTEMBER 2005 12648 (ESIC) 22.10.2005 17.10.2005 NOVEMBER 2005 14073 (ESIC) 24.12.2005 20.12.2005 JANUARY 2006 14916(ESIC) 22.2.2006 14.2.2006 IN THE ABSENCE OF ANY SUPPORTING MATERIAL PLACED ON REC ORD BY THE ASSESSEE TO SHOW THAT AS PER ACTUAL DATE OF PAYMENT THE A MOUNT HAS BEEN PAID WITHIN THE GRACE PERIOD, AS STATED BY HIM IN THE GROUNDS OF APPEAL, WE ARE OF THE VIEW THAT IN THE INTEREST OF J USTICE THE MATTER SHOULD GO BACK TO THE FILE OF THE ASSESSING OFFICER AND A CCORDINGLY WE SET ASIDE THE ORDERS PASSED BY THE REVENUE AUTHORITIES ON THIS ACCOUNT AND SEND BACK THE MATTER TO THE FILE OF THE ASSESSING OFF ICER WHO SHALL DECIDE THE SAME AFRESH IN THE LIGHT OF OUR OBSERVATION HEREINABOVE AND ACCORDING TO LAW AFTER PROVIDING REASONABLE OPPORTUNIT Y OF BEING HEARD TO THE ASSESSEE. THE GROUNDS TAKEN BY THE ASSESSEE ARE, TH EREFORE, PARTLY ALLOWED FOR STATISTICAL PURPOSES . 7. IN THE RESULT, ASSESSEE'S APPEAL STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23.12.2010. SD/- SD/- (RAJENDRA SINGH) ( D.K. AGARWAL ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 23.12.2010. JV. ITA NO.315/M/10 A.Y:06-07 4 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.