Bajaj Processors Ltd., Ahmedabad V. The Income tax Officer, Ward-1(2), Ahmedabad

ITA 3237/AHD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6410 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 06-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S SOURYAVANSHI
• Assessee Lawyers: GAURAV MEHTA

Judgement Text

ITA NO.3237/AHD/2010 ASSESSMENT YEAR 2005-06 1 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH,A HMEDABAD. ( BEFORE SHRI D.K. TYAGI AND SHRI D. C. AGRAWAL) I.T .A. NO. 3237AHD/2010 (ASSESSMENT YEAR : 2005 -2006) BAJAJ PROCESSORS LTD., 109 NEW CLOTH MARKET, OUTSIDE RAIPUR GATE, AHMEDABAD. (APPELLANT) VS. INCOME TAX OFFICER, WAARD 1(2), AHMEDABAD. (RESPONDENT) PAN: AABCB 3640 D APPELLANT BY : SHRI GAURAV MEHTA RESPONDENT BY : SHRI G.S. SOURYAVANSHI, SR. D.R. ( (( ( )/ )/)/ )/ ORDER PER: SHRI D. K. TYAGI, J.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. C.I.T. (A)-VI, AHMEDABAD DATED 22-10-2010 FOR ASSESSMENT Y EAR 2005-06. 2. THE ASSESSEE HAS TAKEN THE FOLLOWING GROUND OF A PPEAL:- THE LD. CIT (A)-VI AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN PASSING APPELLATE ORDER DATED 22-10-2010 FOR ASSESS MENT YEAR 2005-06 IN THE CASE OF THE APPELLANT BY CONFIRMING THE ADDITIO N OF RS.3S,23,567/- ON ACCOUNT OF LATE PAYMENT OF PF AND ESIC ON ACCOUNT O F EMPLOYEES CONTRIBUTION. ITA NO.3237/AHD/2010 ASSESSMENT YEAR 2005-06 2 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. OBSERVED THAT PAYMENT TO EMPLOYEES CONTRIBUTION TO PROVIDENT FUN D AND ESIC WERE NOT PAID WITHIN THE DUE DATE. THEREFORE, THE SAME WERE NOT A LLOWED AND ADDED IN THE TOTAL INCOME OF THE ASSESSEE. THIS ACTION OF THE A.O. WAS CONFIRMED BY THE LD. CIT (A). 4. BEING AGGRIEVED, NOW THE ASSESSEE IS IN APPEAL B EFORE US. AT THE TIME OF HEARING THE LD. COUNSEL OF THE ASSESSEE SUBMITTED T HAT ALL THE PAYMENTS WERE MADE BY THE ASSESSEE BEFORE THE DUE DATE OF FILING OF THE RETURN AND THEREFORE, NO ADDITION IS CALLED FOR. 5. THE LD. D.R. ON THE OTHER HAND, RELIED ON THE OR DERS OF THE LOWER AUTHORITIES . 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD AND FIND THAT THE ISSUE IS NOW COVERED BY THE DECISION OF THIS TRIBUNAL IN THE CASE OF ITO WARD-3 VAPI VS. GUJARAT THEMIS BIOSYN LTD., IN ITA NO. 2378/AHD/2008 FOR ASSESSMENT YEAR 2005-06 PRONOUNCED ON 30-07-201 0 WHEREIN TRIBUNAL HAS HELD AS UNDER:- 5. 1WE FIND THAT THE HONBLE DELHI HIGH COURT IN THE CASE OF P.M. ELECTRONICS LTD. (SUPRA) HAS DECIDED THIS ISSUE OF PAYMENT OF EMPLOYEES CONTRIBUTION TOWARDS PROVIDENT FUND AFTER CONSIDERI NG THE DECISION OF HONBLE APEX COURT IN THE CASE OF VINAY CEMENT (SUP RA) AND ALSO DISTINGUISHED THE CASE LAW REFERRED BY THE LD. DR O F BOMBAY HIGH COURT IN PAMWI TISSUES LTD. (SUPRA). EVEN NOW THIS ISSUE HAS BEEN CONSIDERED BY HONBLE APEX COURT IN THE CASE OF CIT VS. ALOM EXTR USIONS LTD. (2009) 319 ITR 306 (SC) /(2009) 185 TAXMAN 416 (SC), WHERE IN, IT IS HELD THAT CONTRIBUTION TO PROVIDENT FUND, MADE BEFORE DUE DA TE OF FILING OF RETURN ALLOWABLE AS DEDUCTION. THE DELETION OF THE SECOND PROVISO TO SECTION 43B, ITA NO.3237/AHD/2010 ASSESSMENT YEAR 2005-06 3 AND THE AMENDMENT TO THE FIRST PROVISO, BY THE FINA NCE ACT, 2003 WAS TO OVERCOME IMPLEMENTATION PROBLEMS. CONSEQUENTLY, THE AMENDMENTS, THOUGH MADE APPLICABLE BY PARLIAMENT ONLY WITH EFFE CT FROM 1-4-2004, WERE CURATIVE IN NATURE AND WOULD APPLY RETROSPECTI VELY W.E.F. 1-4-1988. ACCORDINGLY, FOLLOWING APEX COURT IN THE CASE OF AL OM EXTRUSIONS LTD. (SUPRA) AND DELHI HIGH COURT IN P.M. ELECTRONICS LT D. (SUPRA), WE DISMISS THIS GROUND OF THE REVENUE. 7. RESPECTFULLY FOLLOWING THE ABOVE DECISION OF THI S TRIBUNAL (SUPRA), THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 17 06 - 2011. SD/- SD/- (D. C. AGRAWAL) (D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBR AHMEDABAD. DATED: 17 - 06 - 2011. S.A.PATKI COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS)-VI, AHMEDABAD. 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABAD ITA NO.3237/AHD/2010 ASSESSMENT YEAR 2005-06 4 1.DATE OF DICTATION 17 -06 -2011 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 17 /06 / 2011 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S 17 - 06 -2011. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 17 -06 -2011 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 17 -06 -2011 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 2 1 -06 -2011. S7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..