DCIT, CO.CIRCLE-1(1), CHENNAI V. APOLLO SINDHOORI HOTELS LTD, CHENNAI

ITA 3222/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9814 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Appeal Filed On: 26-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMATI VENKATRAMAN
• Keywords: Set aside
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI , !' , # $ BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBE R ' ./ ITA NO.3222/CHNY/2018 !% /ASSESSMENT YEAR: 2015-16 DY. COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-1(1), CHENNAI. VS. M/S. APOLO SINDURI HOTELS LTD., NO.41, ANUGRAHA APARTMENTS, UTHAMAR GANDHI SALAI, NUNGAMBAKKAM, CHENNAI 600 034. [PAN: AAACO 0347H] ( & /APPELLANT) ( '(& /RESPONDENT) & ) * / APPELLANT BY : MRS. SUMATI VENKATRAMAN, JCIT '(& ) * /RESPONDENT BY : NONE + ! ) ,# /DATE OF HEARING : 02.05.2019 -.% ) ,# / DATE OF PRONOUNCEMENT : 02.05.2019 / / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER : THE REVENUE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, CHENNAI, IN ITA NO.132/CIT( A)-1/2017-18 DATED 23.08.2018 FOR THE ASSESSMENT YEAR (AY) 2015-16. 2. M/S. APOLO SINDHOORI HOTELS LTD., THE ASSESSEE, IS ENGAGED IN THE BUSINESS OF RUNNING HOTEL. WHILE MAKING THE ASSESS MENT FOR AY 2015-16, THE ASSESSING OFFICER (AO) DISALLOWED THE EMPLOYEES CON TRIBUTION TO PF AND ESI, ITA NO.3222/CHNY/2018 :- 2 -: PAID BELATEDLY UNDER THE RECEIPT OF ACTS, THOUGH T HE ASSESSEE PAID THEM BEFORE THE DUE DATE FOR FILING THE RETURN U/S. 139( 1) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED APPEAL BEFORE CIT(A). THE LD. CIT(A) RELYING ON TH E HON'BLE JURISDICTIONAL HIGH COURTS DECISION IN THE CASE OF CIT V. INDUST RIAL SECURITY AND INTELLIGENCE INDIA (P.) LTD. (ITA NO.585 & 586 OF 2015 DATED 24. 07.2015) DECIDED THE APPEAL IN FAVOUR OF THE ASSESSEE. AGGRIEVED, AGA INST THAT ORDER OF THE LD.CIT(A), THE REVENUE FILED THIS APPEAL WITH THE F OLLOWING GROUNDS: 1. THE ORDER OF THE LD. CIT(A) IS CONTRARY TO LAW, FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LD. CIT(A) ERRED IN HOLDING THAT DELAYED PAY MENTS OF PROVIDENT FUND AND EMPLOYEES STATE INSURANCE DUES B EING THE EMPLOYEES CONTRIBUTIONS UNDER THE RELEVANT STATUTES BUT REMITTED BEFORE THE DUE DATE FOR FILING OF RETURN OF INCOME UNDER THE INCOME TAX ACT ARE ALLOWABLE AS DEDUCTION UNDER SECTION 36 (1)(VA) OF THE INCOME TAX ACT, 3. THE LD. CIT(A) ERRED IN ALLOWING DEDUCTION UNDER SECTION 36(1)(VA) ON DELAYED PAYMENTS OF PROVIDENT FUND AND EMPLOYEES STATE INSURANCE DUES BEING THE EMPLOYEES CONTRIBUTI ONS UNDER THE RELEVANT STATUTES CONSIDERING THAT APPLICATION OF S ECTION 36(1)(VA) READ WITH SECTION 2(24)(X) ALONE IS THE PROPER COUR SE AND ANY OTHER INTERPRETATION WOULD ONLY DEFEAT THE OBJECT AND SCO PE OF BOTH THE PROVISIONS VIZ., 43B AND 36(1)(VA). 4. FOR THESE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE LD. CIT (A) BE SET ASIDE AND THAT OF THE AC RESTORED. 4. THE LD. DR ARGUED AND PRESENTED THE CASE ON THE LINES OF THE GROUNDS OF THE APPEAL SUPRA. NONE WAS PRESENT FOR THE ASSES SEE. 5. WE HEARD THE LD DR AND PERUSED THE MATERIAL ON R ECORD. AS SUBMITTED SUPRA, THE LD CIT (A) BY FOLLOWING THE DECISION OF THE HONBLE JURISDICTIONAL ITA NO.3222/CHNY/2018 :- 3 -: HIGH COURT IN THE CASE OF INDUSTRIAL SECURITY AND I NTELLIGENCE INDIA (P.) LTD., SUPRA, DECIDED THE ISSUE IN THE REVENUES APPEAL IN FAVOUR OF THE ASSESSEE. SINCE THE LD. CIT(A) HAS FOLLOWED THE HONBLE JURISDICTIONAL HIGH COURTS DECISION, WE FIND NO REASON TO INTERFERE WITH THE ORDER OF LD. CIT(A) ON THIS ISSUE. CONSEQUENTLY, THE APPEAL FILED BY T HE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02 ND MAY, 2019 IN CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( . ) (S. JAYARAMAN) # /ACCOUNTANT MEMBER /CHENNAI, 0' /DATED: 02 ND MAY, 2019 . EDN, SR. P.S / ) ',12 32%, /COPY TO: 1. & /APPELLANT 2. '(& /RESPONDENT 3. + 4, ( )/CIT(A) 4. + 4, /CIT 5. 2!56 ', /DR 6. 6 7 /GF