ACIT, Jaipur V. RAJASTHAN RAJYA VIDYUT PRASARAN NIGAM LTD., Jaipur

ITA 325/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5174 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 06-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S DAGUR CIT DHK
• Section: 43B

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO.325/JP/16 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11 THE ACIT, CIRCLE-6, JAIPUR CUKE VS. M/S RAJASTHAN RAJYA VIDYUT PRASARAN NIGAM LTD., JYOTI NAGAR, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABCR 8312 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI R.S. DAGUR (ADDL. CIT ) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 10.08.2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 11/08/2016. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-2, JAIPUR DATED 29.01.2016 WHEREIN THE REVENUE HAS TAK EN FOLLOWING GROUNDS OF APPEAL: 1(A) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING ADDITION OF R S.1,44,69,617/- MADE FOR DEPOSITING THE EMPLOYEES CONTRIBUTION TO PF AND E SI BEYOND THE PRESCRIBED TIME LIMIT PROVIDED IN THE RESPECTIVE AC TS. (B) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW THE CIT(A) HAS ERRED IN HOLDING THAT EMPLOYEES CONTRI BUTION TO GPF & ESI ARE GOVERNED BY THE PROVISION OF SECTION 43B AND NOT BY SECTION 36(1)(VA) R.W.S.2(24)(X) OF IT ACT. ITA NO. 325/JP/16 THE ACIT, CIRCLE-6, JAIPUR VS. RAJ RAJYA VIDYUT PR ASARAN NIGAM LTD. 2 2. THE BRIEF FACTS OF THE CASE ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE FAILED TO DEPOSIT THE EMPLOYEES GPF CONTRIBUTION IN FEW OF CASES AMO UNT OF RS. 1,44,63,775/- IN RESPECT OF VARIOUS UNITS/BRANCHES WITHIN THE PRESCR IBED TIME LIMIT AS PER PROVISIONS OF THE RELEVANT ACT. THE SUBMISSION OF THE ASSESSEE WAS NOT FOUND ACCEPTABLE AND IN TERMS OF PROVISIONS OF SECTION 36 (1)(VA) READ WITH SECTION 2(24)(X) OF THE INCOME TAX ACT, 1961, THE ABOVE SU M WAS DISALLOWED AND ADDED BACK TO THE TOTAL INCOME OF THE ASESSEE. 2.1 DURING THE COURSE OF HEARING, LD AR REITERATED ITS SUBMISSIONS MADE THE LD CIT(A) AND SUBMITTED AS UNDER: (1) UNDER THE ESI ACT, THE AMOUNT NEEDS TO BE DEPOS ITED WITHIN 21 DAYS FROM THE END OF THE MONTH IN WHICH THE AMOUNT DEDU CTED/COLLECTED. HOWEVER, BY CPFC CIRCULAR NO. E-128 DATED 19.03.196 4 WHICH WAS MODIFIED BY THE CIRCULAR NO.73 DATED 24.10.1973, FIVE DAYS GRAC E IS ALLOWED WITHOUT PAYMENT OF ANY DAMAGES AND 15 DAYS ARE ALLOWED WIT H THE PAYMENT OF DAMAGES. IF THIS GRACE PERIOD IS CONSIDERED, THE DU E DATE FOR DEPOSIT OF EMPLOYEES CONTRIBUTION TOWARDS ESI WORKS OUT TO 26 TH OF NEXT MONTH. HENCE IN MOST OF THE CASES THERE IS NO DELAY IN DEPOSIT OF T HE CONTRIBUTION. (2) EVEN OTHERWISE IN THE CASE OF DELAY IN DEPOSIT OF EMPLOYEES CONTRIBUTION TOWARDS PF/ESI FUND, THE VARIOUS HIGH COURTS INCLU DING THE RAJASTHAN HIGH COURT HAS HELD THAT IF THE CONTRIBUTION TO PF/ESI I S DEPOSITED BEFORE THE DUE DATE OF FILING OF THE RETURN, THE SAME IS ALLOWABL E. IN THE PRESENT CASE THE ASSESSEE HAS DEPOSITED THE ENTIRE ESI CONTRIBUTION CLAIMED BY IT OF RS. 1,44,69,617/- BEFORE THE DUE DATE OF FILING RETURN OF INCOME AS EVIDENT FROM ANNEXURE-C TO THE TAX AUDIT REPORT AND THUS THE SAM E CANNOT BE DISALLOWED. ITA NO. 325/JP/16 THE ACIT, CIRCLE-6, JAIPUR VS. RAJ RAJYA VIDYUT PR ASARAN NIGAM LTD. 3 (3) THE LD AR FURTHER PLACED RELIANCE ON THE FOLLOW ING CASES: CIT VS. STATE BANK OF BIKANER & JAIPUR(2014) 99 DTR 131 (RAJ.HC) CIT VS. JAIPUR VIDHUT VITRAN NIGAM LTD. (2014)98 DT R 105 (RAJ.HC) CIT VS. UDAIPUR DUGDH UTPADAK SAHKARI SANG LTD. (20 13) 908 DTR 109 (RAJ.HC) 2.2 THE LD. DR RELIED ON THE ORDER OF THE AO. 2.3 THE FINDINGS OF THE LD CIT(A) ARE AS FOLLOWS: I HAVE PERUSED THE FACTS OF THE CASE, THE ASSESSME NT ORDER AND THE SUBMISSIONS OF THE APPELLANT. ADMITTEDLY, CONTRIBU TION TO PF & ESI HAS BEEN PAID BY THE APPELLANT, IN ALL INSTANCES, BEFO RE THE DUE DATE OF FILING THE RETURN OF INCOME U/S 139(1). THIS FACT IS THER EFORE, NOT IN DISPUTE. IN VIEW OF THE JUDGEMENTS OF THE RAJASTHAN HIGH COURT IN THE CASE OF JAIPUR VIDHYUT VITHRAN NIGAM LTD. 265 CTR 62 (RAJ.) CIT V S. STATE BANK OF BIKANER & JAIPUR (2014) 99 DTR 131 (RAJ.) AND OTHER CASE LAWS ON THIS ISSUE, THE CLAIM OF THE APPELLANT IS ALLOWABLE. AC CORDINGLY, THIS DISALLOWANCE MADE BY THE ASSESSING OFFICER IS, DIRE CTED TO BE DELETED. THIS GROUND IS ALLOWED. 2.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND MERIT IN THE ORDER OF THE LD. C IT(A) WHO HAS RIGHTLY ALLOWED THE APPEAL OF THE ASSESSEE IN VIEW OF THE DECISIONS OF HONBLE JURISDICTIONAL HIGH COURT (SUPRA). THUS GROUNDS RAISED BY THE REV ENUE ARE DISMISSED. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11/0 8/2016. SD/- SD/- ( KUL BHARAT ) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 11/ 08/2016 ITA NO. 325/JP/16 THE ACIT, CIRCLE-6, JAIPUR VS. RAJ RAJYA VIDYUT PR ASARAN NIGAM LTD. 4 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CIRCLE-6, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- RAJ. RAJYA VIDYUT PRASARAN NIGAM LT D. JAIPUR 3. VK;DJ VK;QDR@ CIT II, JAIPUR 4. VK;DJ VK;QDRVIHY@ THE CIT(A)-II, JAIPUR 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.325/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR