The Gujarat State Civil Supplies Corporation Ltd., Gandhinagar V. The DCIT, Gandhinagar Circle, Gandhinagar

ITA 316/AHD/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7420 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 01-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: L. P. JAIN
• Keywords: Revised return
• Section: 2; 43B; 143(3); 234B; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH (CONDUCTED THROUGH VIRTUAL COURT) BEFORE: SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEM BER THE GUJARAT STATE CIVIL SUPPLIES CORPORATION LTD. CIVIL SUPPLIES BUILDING, NR. NEW SACHIVALAYA, SECTOR-10, GANDHINAGAR PAN: AAACT5736F (APPELLANT) VS THE DEPUTY CIT, GANDHINAGAR CIRCLE, GANDHINAGAR (RESPONDENT) REVENUE BY: SHRI L.P. JAIN, SR. D.R. ASSESSEE BY: MS. APARNA PARELKAR, A .R. DATE OF HEARING : 23-08-2021 DATE OF PRONOUNCEMENT : 27-08-202 1 /ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- THIS ASSESSEES APPEAL FOR A.Y. 2015-16, ARISES FRO M ORDER OF THE CIT(A)-13, AHMEDABAD DATED 17-12-2018, IN PROCEEDI NGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APP EAL:- 1. THE ORDER PASSED BY THE LEARNED CIT(A) IS ERR ONEOUS AND CONTRARY TO THE PROVISIONS OF LAW AND FACTS AND THEREFORE REQUIRES TO BE SUITABLY MODIFIED. IT IS SUBMITTED THAT IT BE SO DONE NOW. ITA NO. 316 /AHD/2019 ASSESSMENT YEAR 2015-16 I.T.A NO. 316/AHD/2019 A.Y. 2015-16 PAGE NO THE GUJARAT STATE CIVIL SUPPLIES CORPORATION LTD. V S. DEPUTY CIT 2 2. THE LEARNED CIT(A)ERRED ON FACTS AND IN LAW IN CONFIRMING THE ADDITION MADE BY THE AO AMOUNTING TO RS. 14,80,156 WHILE COMPUTIN G THE TOTAL INCOME OF THE APPELLANT IN RESPECT OF DELAYED PAYMENT OF EMPLOYEE 'S CONTRIBUTION TO ESI AND PROVIDENT FUND UNDER SECTION 36(L)(VA) OF THE INCOM E-TAX ACT, 1961 ('THE ACT') INSPITE OF THE FACT THAT THE SAID CONTRIBUTION HAS ALREADY BEEN MADE ON OR BEFORE THE DUE DATE OF FILING RETURN OF INCOME AND ACCORDI NGLY ALLOWABLE UNDER SECTION 43B OF THE ACT. IT IS SUBMITTED THAT IT BE SO HELD NOW. 3. THE LEARNED CIT(A) ERRED IN NOT ADJUDICATING T HE GROUND OF THE APPELLANT IN RESPECT OF CHARGING INTEREST UNDER SECTION 234B OF RS. 20,13,204. IT IS SUBMITTED THAT IT BE SO HELD NOW. 4. THE LEARNED CIT(A) ERRED IN NOT ADJUDICATING TH E GROUND OF THE APPELLANT IN RESPECT OF CHARGING INTEREST UNDER SECTION 234C OF RS. 8,15,197 INSPITE OF THE FACT THAT INTEREST CHARGED UNDER SECTION 234C WHILE FILI NG REVISED RETURN OF INCOME IS RS. 6,86,362. IT IS SUBMITTED THAT IT BE SO HELD NO W. 3. THE FACT IN BRIEF IS THAT RETURN OF INCOME DECLA RING TOTAL INCOME OF RS. 6,06,69,680/- WAS FILED. THE CASE WAS SUBJECT TO SCRUTINY ASSESSMENT AND NOTICE U/S. 143(2) OF THE ACT WAS ISSUED ON 12 TH SEP, 2016. DURING THE COURSE ASSESSMENT, THE ASSESSING OFFICER NOTICED TH AT ASSESSEE HAS MADE LATE PAYMENT OF EMPLOYEES CONTRIBUTION TOWARDS ESI/EPF T O THE AMOUNT OF RS. 14,80,156/-. THE ASSESSING OFFICER HAS DISALLOW ED THE SAME AFTER REFERRING THE PROVISION OF SECTION 36(1)(VA) R.W.S. 2(24)(X) THAT THE DEDUCTION FROM EMPLOYEES CONTRIBUTION IS ALLOWABLE ONLY IF S UCH SUM IS CREDITED BY EMPLOYER (ASSESSEE) TO THE EMPLOYEES ACCOUNT IN TH E RELEVANT FUND OR FUNDS BEFORE THE DUE DATE. 4. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE L D. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE. 5. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. THE ASSESSING OFFICER HAS MADE DISALLOWANCE FOR THE REA SON THAT EMPLOYEES I.T.A NO. 316/AHD/2019 A.Y. 2015-16 PAGE NO THE GUJARAT STATE CIVIL SUPPLIES CORPORATION LTD. V S. DEPUTY CIT 3 CONTRIBUTION TO P.F. AND ESI AMOUNTING TO RS. 14,80 ,156/- WAS NOT PAID WITHIN THE DUE DATES SPECIFIED U/S. 36(I)(VA) OF TH E I.T. ACT, THEREFORE, THE SAME WAS TREATED AS INCOME AS PER THE PROVISIONS OF SUB-CLAUSE (X) OF CLAUSE (24) OF SECTION 2 OF THE ACT. THE HONBLE JURISDI CTIONAL HIGH COURT OF GUJARAT IN THE CASE OF GUJARAT ROAD TRANSPORT CORPO RATION (2014) 41 TAXMAN.COM 100 (GUJ) HELD THAT ASSESSEE IS ENTITLE D FOR THE DEDUCTION ONLY IF THE AMOUNT IS CREDITED TO THE RELEVANT FUNDS BEFORE THE DUE DATE, THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE GUJARAT HIGH COURT AS REFERRED ABOVE, WE DO NOT FIND ANY INFIRMITY IN THE DECISION OF THE LD. CIT(A). THEREFORE, THIS GROUND OF APPEAL OF THE A SSESSEE IS DISMISSED. 6. GROUND NOS. 3 & 4 ARE PERTAINED TO CHARGING OF I NTEREST U/S. 234B OF RS. 20,13,204/- AND U/S. 234C OF RS. 8,15,197/-. 7. DURING THE COURSE OF ASSESSMENT AS PER INCOME TA X CALCULATION SHEET, THE ASSESSING OFFICER HAS CHARGED INTEREST U/S. 234 B TO THE AMOUNT RS. 20,13,204/- AND U/S. 234C TO THE AMOUNT OF RS. 8,15 ,197/- RESPECTIVELY. AGAINST CHARGING THE AFORESAID INTEREST, THE ASSESS EE HAS FILD APPEAL BEFORE THE LD. CIT(A) AND REQUESTED TO DIRECT THE ASSESSIN G OFFICER TO CHARGE INTEREST UNDER THE AFORESAID SECTIONS IN ACCORDANCE WITH THE PROVISION OF THE ACT. HOWEVER, IT IS NOTICED THAT NO SPECIFIC DIRE CTION HAS BEEN PROVIDED BY THE LD. CIT(A) ON THE AFORESAID GROUNDS OF APPEAL RAISED BY THE ASSESSEE. 8. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. WITHOUT REITERATING THE FACTS AS MENTIONED ABOVE, WE DIRECT THE ASSESSING OFFICER TO EXAMINE THE ISSUE OF COMPUTING INTEREST U/S. 234B A ND 234C AFTER I.T.A NO. 316/AHD/2019 A.Y. 2015-16 PAGE NO THE GUJARAT STATE CIVIL SUPPLIES CORPORATION LTD. V S. DEPUTY CIT 4 EXAMINATION OF THE SUBMISSION OF THE ASSESSEE IN AC CORDANCE WITH THE PROVISION OF SECTION 234B AND 234C OF THE ACT RESPE CTIVELY. ACCORDINGLY, THIS GROUND OF APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE I S PARTLY ALLOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED IN THE OPEN COURT ON 27-08-2021 SD/- SD/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 27/08/2021 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,