ACIT, Kota V. INSTRUMENTATION LTD.M, Kota

ITA 332/JPR/2011

• Counselvise Citation: 33223114 RSA 2011
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2003-2004
• Appeal Filed On: 18-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBHASH CHANDRA
• Section: 43B; 143(3); 154; 2

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO.332/ JP/2011 ASSESSMENT YEAR 2003-04 PAN: AAACL 4212 G THE ACIT VS. M/S. INSTRUMENTATION LTD. CIRCLE- 1, KOTA JHALAWAR ROAD, KOTA (APPELLANT ) (RESPONDENT) DEPARTMENT BY : SHRI SUBHASH CHANDRA ASSESSEE BY : SHRI P.C. PARWAL ORDER PER N.L. KALRA, AM:- THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A), AJMER DATED 14-02-2011FOR THE ASSESSMENT YEAR 2003- 04. 2.1 THE ONLY GRIEVANCE OF THE REVENUE IS THAT THE L D. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 7,50,99,387/- ON ACCOU NT OF CONTRIBUTION OF COMPANY AND EMPLOYEES P.F CONTRIBUTION FOR THE YEA R 2001-02. 2.2 IN THE INSTANT CASE THE ASSESSMENT WAS COMPLETE D U/S 143(3) OF THE ACT ON 28-10-2005. AFTER COMPLETION OF THE ASSESSMENT, IT CAME TO THE NOTICE OF THE AO THAT THE AMOUNT PAID ON ACCOUNT OF COMPANY S AND EMPLOYEES P.F CONTRIBUTION PERTAINING TO THE YEAR 201-02 HAS NOT BEEN ADDED AS PER PROVISIONS OF SECTION 43B READ WITH PROVISO TO SECT ION 36(1)(VA). HENCE, 2 NOTICE U/S 154 WAS ISSUED ON 11-09-2006. NO REPLY W AS FILED BY THE ASSESSEE AND THEREFORE, THE AO ADDED BACK A SUM OF RS. 7,50, 99,387/- U/S 154 OF THE ACT. 2.3 THE LD. CIT(A) VIDE ORDER PARA 4.3 OF THE ORDER HELD THAT THE AO WAS NOT JUSTIFIED IN ADDING BACK A SUM OF RS. 7,50,99,3 87 BECAUSE THE ISSUE ON WHICH ADDITION HAS BEEN MADE IS DEBATABLE. ACCORDIN GLY THE ORDER U/S 154 OF THE ACT WAS QUASHED AFTER OBSERVING AS UNDER:- 4.3. AS INTIMATED BY APPELLANT, DEDUCTION OF RS. 7,50,99,387/- WAS CLAIMED BY IT U/S 43B IN VIEW OF DECISION OF HON'BLE SUPREME COURT IN THE CASE OF VINAY CEMENT LTD. THE ISSUE REGARDING DEDUCTION OF THIS AMOUNT IS DEBATAB LE IN VIEW OF VARIOUS COURTS DECISION AND IT CANNOT BE CALLED A MISTAKE APPARENT FROM RECORD. I THEREFORE, HOLD THAT THE AO WAS NOT JUSTIFIED IN WITHDRAWING DEDUCTION OF THIS AMOUNT B Y PASSING ORDER U/S 154. THE ORDER U/S 154 IS DIRECTED TO BE QUASHED. 2.4 WE HAVE HEARD BOTH THE PARTIES. SO FAR AS THE C ONTRIBUTION OF COMPANIES PF ACCOUNT IS CONCERNED, THE SAME STAND S DECIDED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HON'BLE APEX COURT IN THE CASE OF VINAY CEMENT LTD., 311 ITR 1. THE HON'BLE DELHI HIGH COUR T IN THE CASE OF CIT VS. AMIL LTD. , 321 ITR 508 HAS HELD THAT EMPLOYEE S CONTRIBUTION TOWARDS PROVIDENT FUND CANNOT BE DISALLOWED IF THE SAME IS PAID BEFORE DUE DATE OF 3 FILING OF RETURN. THE CONTRIBUTION HAS BEEN DEPOSIT ED DURING THE YEAR AS PER THE FACTS MENTIONED BY THE LD. CIT(A) AT PARA 4.1 I N HIS ORDER. LOOKING TO THE FACTUAL AND LEGAL ASPECTS OF THE ISSUE, WE HOLD THA T THE LD. CIT(A) WAS JUSTIFIED IN HOLDING THAT THE ORDER U/S 154 PASSED BY THE AO IS NOT VALID IN THE EYE OF LAW. ACCORDINGLY THE APPEAL OF THE REVEN UE IS DISMISSED. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. . THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 05-08 -2011. SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 05 /08/2011 *MISHRA COPY FORWARDED TO :- 1. THE ACIT, CIRCLE- 1, KOTA 2. M/S. INSTRUMENTATION LTD., KOTA 3 THE LD. CIT BY ORDER 4. THE LD. CIT(A) 5 THE LD.DR 6 THE GUARD FILE (ITA NO.332 /11) A.R, ITAT, JAIPUR