Appeal details
Counselvise Citation
[2018] 126 COUNSELVISE.COM (IT) 6308 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 year(s) 1 month(s) 10 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
15-01-2018
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
D
Assessment Year
2010-2011
Appeal Filed On
05-12-2014
Judgement Text
, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER !# I.T.A. NO.3210/AHD/2014 ( / ASSESSMENT YEAR : 2010-11) M/S. VIJEET FACILITY MANAGEMENT PVT. LTD., C-310, SUKOMAL SOCIETY, SUJAL APT., RAMDEVNAGAR, AHMEDABAD 380 815 # VS. THE ITO, WARD 8(4), AHMEDABAD. $ # % & # PAN/GIR NO. : AACCV 2526 R ( !$' / APPELLANT ) .. ( ($' # RESPONDENT ) !$') # APPELLANT BY : SHRI S. N. DIVATIA, A.R. ($'*) / RESPONDENT BY : SHRI V. K. SINGH, SR. D.R. + ,*-. / DATE OF HEARING 02/01/2018 /012*-. / DATE OF PRONOUNCEMENT 15/01/2018 3# O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER : THIS IS AN APPEAL BY THE ASSESSEE IS DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-XIV, AHMEDA BAD, VIDE APPEAL NO.CIT(A)-XIV/ITO/WARD-8(4)/54/2013-14 DATED 09/09/2014 FOR THE ASSESSMENT YEAR (AY) 2010-11, ON THE FOLLOWING GROUNDS: ITA NO.3210/AHD /2014 M/S. VIJEET FACILITY MANAGEMENT PVT. LTD. VS. ITO ASST.YEAR 2010-11 - 2 - 1.1 THE ORDER PASSED U/S.250 ON 09-09-2014 FOR A.Y.2010 -11 BY CIT(A)-XIV, ABAD UPHOLDING THE DISALLOWANCE OF EMPL OYEES CONTRIBUTION TO ESI AND PF AGGREGATING TO RS.11,80, 059/- U/S. 36(1)(VA) MADE BY AO IS WHOLLY ILLEGAL, UNLAWFUL AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 1.2 THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND OR ON FACTS IN NOT CONSIDERING FULLY AND PROPERLY THE SUBMISSIONS MADE AND EVIDENCE PRODUCED BY THE APPELLANT WITH REGARD TO T HE IMPUGNED DISALLOWANCE. 2.1 THE LD.CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND O N FACTS IN CONFIRMING THE DISALLOWANCE OF EMPLOYEES CONTRIBUTI ON TO ESI AND PF AGGREGATING TO RS.11,80,059/- U/S. 36(1)(VA) MADE BY AO. 2.2 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW, THE LD.CIT(A) OUGHT NOT TO HAVE UPHELD THE DISALLOW ANCE OF EMPLOYEES CONTRIBUTION TO ESI AND PF AGGREGATING TO RS.11,80,059/- U/S. 36(1)(VA) MADE BY AO. 2.3 THE LD.CIT(A) HAS ERRED IN UPHOLDING THAT THE EMPLOYEES CONTRIBUTION TO ESI AND PF AGGREGATING TO RS.11,80, 059/- WERE DEPOSITED BELATEDLY. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERI ALS ON RECORD ARE AS UNDER:- THE APPELLANT IS A CLOSELY HELD COMPANY AND ENGAGED IN THE BUSINESS OF HOUSEKEEPING, CLEANING AND MANPOWER SUP PLY SERVICES. IT MAINTAINS PROPER AND REGULAR BOOKS OF ACCOUNTS WHIC H ARE SUBJECT TO STATUTORY AND TAX AUDIT. IT HAD FILED ITS RETURN OF INCOME FOR A.Y.2010-11 ON 01-10-2010 DECLARING TOTAL INCOME OF RS.17,65,10 0/-. 2.1 DURING THE COURSE OF ASSTT. PROCEEDINGS, THE AO NOTICED THAT THE APPELLANT HAD CLAIMED DEDUCTION OF RS.22,82,652/- B EING THE EMPLOYERS ITA NO.3210/AHD /2014 M/S. VIJEET FACILITY MANAGEMENT PVT. LTD. VS. ITO ASST.YEAR 2010-11 - 3 - & EMPLOYEES CONTRIBUTION TO P.F. AND ESI WHICH WAS PAID LATE THAN THE DUE DATE OF PAYMENT. THE TOTAL AMOUNT OF EMPLOYERS & EMPLOYEES CONTRIBUTION TO PF & ESI WAS RS.27,94,614/-. HOWEVE R, THE AO REJECTED THE SAME ON THE GROUND THAT THE SAID CONTRIBUTION W ERE PAID BEYOND THE DUE DATE AS PROVIDED UNDER P.F AND ESI ACT. HENCE, THE SAME WAS DISALLOWED U/S.43B. 3. BEING AGGRIEVED, THE APPELLANT PREFERRED APPEAL TO CIT(A) WHEN IT WAS POINTED OUT THAT OUT OF THE TOTAL AMOUNT OF RS. 27,94,614/-, EMPLOYERS CONTRIBUTION TO P.F. AND ESI CONSISTED OF RS.11,27, 927/- AND RS.4,86,628/-, THUS AGGREGATING TO RS.16,14,555/- W HEREAS THE EMPLOYEES CONTRIBUTION CONSISTED OF RS.11,80,059/- BY WAY OF P.F. OF RS.10,00,176/- AND ESI OF RS.1,79,883/-. THE CIT(A) ALLOWED EMPLOY ERS CONTRIBUTION OF RS.9,48,065/- WHEREAS THE EMPLOYEES CONTRIBUTION WA S HELD TO BE DISALLOWABLE IN VIEW OF DECISION OF HON'BLE GUJARAT HIGH COURT IN CASE OF GSRTC. 4. WE HAVE GONE THROUGH THE RELEVANT RECORD AND IMP UGNED ORDER. WE DIRECT AFORESAID GUJARAT HIGH COURT JUDGMENT, WH ICH IS AGAINST THE APPELLANT AND RELEVANT PORTION OF THE SAID JUDGMENT IS REPRODUCED AS UNDER: 'SECTION 43B, READ WITH SECTION 36(1)(VA) OF THE IN COME-TAX ACT, 1961 - BUSINESS DISALLOWANCE - CERTAIN DEDUCTIONS TO BE AL LOWED ON ACTUAL PAYMENT (EMPLOYEE CONTRIBUTION) - WHETHER WHERE AN EMPLOYER HAS NOT ITA NO.3210/AHD /2014 M/S. VIJEET FACILITY MANAGEMENT PVT. LTD. VS. ITO ASST.YEAR 2010-11 - 4 - CREDITED SUM RECEIVED BY IT AS EMPLOYEES' CONTRIBUT ION TO EMPLOYEES' ACCOUNT IN RELEVANT FUND ON OR BEFORE DUE DATE AS P RESCRIBED IN EXPLANATION TO SECTION 36(1)(VA), ASSESSES SHALL NOT BE ENTITLED TO DEDUCTION OF SUCH AMOUNT THOUGH HE DEPOSITS SAME BE FORE DUE DATE PRESCRIBED UNDER SECTION 43B I.E., PRIOR TO FILING OF RETURN UNDER SECTION 139(1) - HELD, YES - ASSESSEE STATE TRANSPORT CORPO RATION COLLECTED A SUM BEING PROVIDENT FUND CONTRIBUTION FROM ITS EMPL OYEES - HOWEVER, IT HAD DEPOSITED LESSER SUM IN PROVIDENT FUND ACCOUNT - ASSESSING OFFICER DISALLOWED SAME UNDER SECTION 43B - HOWEVER, COMMIS SIONER (APPEALS) DELETED DISALLOWANCE ON GROUND THAT EMPLOYEE, CONTR IBUTION WAS DEPOSITED BEFORE FILING RETURN - WHETHER SINCE ASSESSES HAD NO DEPOSITED SAID CONTRIBUTION IN RESPECTIVE FUND ACCOUNT ON DAT E AS PRESCRIBED IN EXPLANATION TO SECTION 36(1)(VA), DISALLOWANCE MADE BY ASSESSING OFFICER WAS JUST AND PROPER - HELD, YES [PARA 8] [I N FAVOUR OF REVENUE]' 5. RESPECTFULLY FOLLOWING THE AFORESAID JUDGMENT, W E ARE NOT INCLINE TO GIVE ANY KIND OF RELIEF TO THE ASSESSEE. 6. IN THE RESULT, APPEAL FILED BY THE APPELLANT IS DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 15 / 01 /201 8 SD/- SD/- ( ) 4 5 ( N.K. BILLAIYA ) ( MAHAVIR PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 15/01/2018 PRITI YADAV, SR.PS ITA NO.3210/AHD /2014 M/S. VIJEET FACILITY MANAGEMENT PVT. LTD. VS. ITO ASST.YEAR 2010-11 - 5 - !'#$ %$' # COPY OF THE ORDER FORWARDED TO : 1. !$' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 67- + 8- / CONCERNED CIT 4. + 8- 4!5 / THE CIT(A)-XIV, AHMEDABAD. 5. 9:;-67 !.!672 ! / DR, ITAT, AHMEDABAD 6. ;<=, # GUARD FILE. & ' / BY ORDER, (9-- //TRUE COPY// (/' )* ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD TRUE COPY 1. DATE OF DICTATION 10/01/2018 (DICTATION-PAD 2 PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 15/01/2018 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER
