Etawah Zila Sahkari Bank Limited, Etawah V. A.C.I.T., Circle-5, Firozabad

ITA 324/AGR/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0527 (ITAT-AGRA)
• Duration Of Justice: 6 year(s) 10 month(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 07-01-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 16-07-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Assessee Lawyers: K G AGARWAL
• Section: 37

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 324/AGRA/2012 ASSTT. YEAR : 2008-09 ETAWAH ZILA SAHKARI BANK, VS. A.C.I.T., CIRCLE-5 , LIMITED, COURT ROAD, FIROZBAD. ETAWAH. (PAN: AAALE 0024 G) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.G. AGARWAL, C.A. RESPONDENT BY : SHRI K.K. MISHRA, JR. D.R. DATE OF HEARING : 07.01.2013 DATE OF PRONOUNCEMENT OF ORDER : 11.01.2013 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A)-II, AGRA DATED 20.03.2012 FOR THE ASSESSMENT YEAR 2008- 09, CHALLENGING THE ORDER OF THE LD. CIT(A) IN CONFIRMING THE DISALLOWANCE OF RS .23,95,289/- TOWARDS EMPLOYEES PROVIDENT FUND. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE AO N OTICED THAT THE ASSESSEE HAS A SYSTEM TO TRANSFER / PAY CONTRIBUTIONS RECEIVED FRO M EMPLOYEES TO PROVIDENT FUND EVERY MONTH REGULARLY. ALL THE ELIGIBLE CONTRIBUTIO NS U/S. 2(24)(X) HAVE BEEN ITA NO. 324/AGRA/2012 2 DEPOSITED WITHIN SEVEN DAYS OF THE DEDUCTION. HOWEV ER, PROVIDENT FUND IS NEITHER RECOGNIZED BY THE INCOME-TAX OFFICE NOR PROVIDENT F UND OFFICE. THE ASSESSEE HAS DEPOSITED RS.23,95,289/- FOR PROVIDENT FUND, WHICH IS, THUS, NOT ALLOWABLE U/S. 36(1)(IV) READ WITH SECTION 2(24)(X) OF THE IT ACT AND THE SAME WAS ADDED TO THE INCOME OF THE ASSESSEE. THE ASSESSEE SUBMITTED BEFO RE THE AO THAT THE APPLICATION FOR RECOGNITION OF PROVIDENT FUND IS PENDING BEFORE THE INCOME-TAX AUTHORITIES. THE ADDITION WAS CHALLENGED BEFORE THE LD. CIT(A) A ND IT WAS SUBMITTED THAT THE RECOGNITION HAS BEEN GRANTED BY THE LD. CIT-II, AGR A W.E.F. 01.07.2008 AND, THEREFORE, ALTERNATIVELY, IT IS ALLOWABLE AS BUSINE SS EXPENDITURE U/S. 37 OF THE IT ACT. THE LD. CIT(A), HOWEVER, DISMISSED THE APPEAL OF THE ASSESSEE AS THE PROVIDENT FUND IS RECOGNIZED IN THE CASE OF THE ASS ESSEE BY CIT-II, AGRA W.E.F. 01.07.2008. 3. AFTER HEARING THE RIVAL CONTENTIONS OF BOTH THE PARTIES, WE ARE OF THE VIEW THAT THE LD. CIT(A) RIGHTLY CONFIRMED THE ADDITION ON THE MATTER IN ISSUE. IT IS NOT IN DISPUTE THAT THE PROVIDENT FUND IN THE CASE OF THE ASSESSEE WAS RECOGNIZED BY THE CIT-II, AGRA W.E.F. 01.07.2008 (PB-3). THUS, THERE WAS NO RECOGNITION OF PROVIDENT FUND IN THE ASSESSMENT YEAR UNDER APPEAL. THE ASSES SEE MADE CLAIM OF DEDUCTION U/S. 36(1)(IV) OF THE IT ACT, WHICH ITSELF PROVIDES THAT DEDUCTION COULD BE ALLOWED TO THE ASSESSEE WHEN THE ASSESSEE MADE CONTRIBUTION TOWARDS A RECOGNIZED ITA NO. 324/AGRA/2012 3 PROVIDENT FUND. THUS, THE NECESSARY INGREDIENTS OF SECTION 36(1)(IV) ARE NOT SATISFIED IN THE CASE OF THE ASSESSEE. THEREFORE, T HE AUTHORITIES BELOW WERE JUSTIFIED IN MAKING AND CONFIRMING THE ADDITION AGAINST THE A SSESSEE. FURTHER, THE ASSESSEE HAS NOT BEEN ABLE TO PROVE ALTERNATIVE CONTENTION T HAT SUCH EXPENDITURE WAS WHOLLY OR EXCLUSIVELY LAID OUT OR EXPENDED FOR THE PURPOSE OF BUSINESS OF THE ASSESSEE. THUS, EVEN ON ALTERNATIVE CONTENTION, THE ASSESSEE HAS NO CASE FOR GRANT OF DEDUCTION. WHEN THERE IS VIOLATION OF SPECIFIC PROV ISIONS OF LAW IN WHICH THE DEDUCTION HAS BEEN CLAIMED, NO RELIEF ON ALTERNATIV E CONTENTION COULD BE GRANTED IN FAVOUR OF THE ASSESSEE. IN VIEW OF THE ABOVE DISCUS SION, WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE ASSESSEE. THE SAME FAILS AND IS D ISMISSED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY