The Puri District Co-operative Milk Producer's Union Ltd., Bhubaneswar V. ITO, Ward-2(2), Bhubaneswar

ITA 342/CTK/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5033 (ITAT-CUTTACK)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 04-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B K DAS
• Section: 43B

Judgement Text

, . . , , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH , CUTTACK [ , BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ./ ITA NO. 3 42 / CTK /20 1 8 ( [ [ / ASS ESSMENT YEAR : 20 1 4 - 20 1 5 ) THE PURI DISTRICT CO - OPERATIVE MILK PRODUCERS UNION LIMITED, CHINTAMANISWAR, KALPANA AREA, BHUBANESWAR VS. ITO, WARD - 2 ( 2 ), BHUBANESWAR ./ ./ PAN/GIR NO. : A A AAT 8507 C ( / APPELLANT ) .. ( / RESPONDENT ) [ /AS SESSEE BY : SHRI B.K.DAS(WRITTEN SUBMISSION) /REVENUE BY : SHRI SUBHENDU DUTTA , DR / DATE OF HEARING : 04 / 0 2 /201 9 / DATE OF PRONOUNCEMENT 05 / 02 /201 9 / O R D E R THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 1 , BHUBANESWAR, DATED 05.06.2018 IN FIRST APPEAL NO. 0076/17 - 18, FOR THE ASSESSMENT YEAR 201 4 - 201 5 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. THE ORDER PASSED BY THE LEARNED CIT(APPEALS - 1), BHUBANESWAR IS CAPRICIOUS, INVALID, ILLEGAL AND BAD IN LAW . 2. THAT THE DISALLOWANCE OF EMPLOYEES CONTRIBUTION TO PF TO THE EXTENT OF RS.15,15,620/ - , ON THE GROUND OF NON - DEPOSIT WITHIN THE STIPULATED TIME PERI OD IS ARBITRARY, WRONG & NON BASED ON THE AVAILABLE FACTS. 3 THE APPELLANT CRAVES LEAVES TO AMEND, MODIFY, OBLIGE, ADD TO OR RESIGNED ANY OR ALL OF THE ABOVE GROUND. 3 . THE FACTS IN BRIEF ARE THAT THE ASSESSEE IS A COOPERATIVE SOCIETY OPERATING UNDER OMF ED IN PURI DISTRICT, ENGAGED IN PROCUREMENT AND ITA NO. 342 /CTK/2018 2 PROCESSING OF MILK AND MILK PRODUCTS. THE ASSESSEE FILED RETURN OF INCOME ELECTRONICALLY ON 27.12.2016 FOR THE A.Y.2014 - 2015 DECLARING TOTAL INCOME OF RS. 15,15,620/ - . T HE AO COMPLETED THE ASSESSMENT ASSESSI NG TOTAL INCOME AT RS. 15,15,620/ - AND PASSED ORDER U/S.143(3) OF THE ACT, DATED 27 .12.2016 AND DISALLOWED THE SAME AS THE ASSESSEE HAS NOT REMITTED THE AMOUNT OF RS.15,15,619/ - BEING EMPLOYEES CONTRIBUTIONS TOWARDS EPF WITHIN THE DUE DATES AS SPECIFIED IN THE RELEVANT STATUTE. 4 . IN APPEAL, THE CIT(A) CONFIRMED THE DISALLOWANCE MADE BY THE AO. 5 . NOW, THE ASSESSEE IS IN FURTHER APPEAL BEFORE THE TRIBUNAL. 6 . LD. AR HAS FILED WRITTEN SUBMISSION AND SUBMITTED THAT EMPLOYEES PROVIDENT FUND CONTRIBUTION WHI CH HAD BEEN REMITTED BELATEDLY BEYOND THE DUE DATE PRESCRIBED UNDER EMPLOYEES PROVIDENT FUND ACT, 1962 BUT BEFORE THE DUE DATE OF FILING OF RETURN OF INCOME SHOULD NOT BE DISALLOWED U/S.43B OF THE INCOME TAX, ACT, 1962 AND PRAYED FOR ALLOWING THE APPEAL O F THE ASSESSEE. 7 . LD. DR, ON THE OTHER HAND, VEHEMENTLY SUPPORTED THE ORDERS OF AUTHORITIES BELOW AND SUBMITTED THAT THE CIT(A) HAS RIGHTLY RELIED ON THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. GUJARAT STATE ROAD TRANSPORT CORPORATIO N, REPORTED AS 366 ITR 170 (GUJ) AND PRAYED FOR DISMISSAL OF THE APPEAL OF ASSESSEE. 8 . I HAVE HEARD THE ARGUMENTS OF LD. DR AND GONE THROUGH THE WRITTEN SUBMISSION FILED BY THE LD. AR OF THE ASSESSEE AND PERUSED THE RELEVANT MATERIAL PLACED ON RECORD OF THE TRIBUNAL. I FIND THAT THE ASSESSEE HAS DEPOSITED THE EPF AMOUNT OF RS. 15,15,619/ - BEFORE DUE DATE OF FILING OF ITA NO. 342 /CTK/2018 3 THE RETURN U/S.139(1) OF THE ACT. THE ADDITION WAS MADE ON THE GROUND THAT THE EMPLOYEES CONTRIBUTION TO EPF WAS NOT DEPOSITED WITHIN THE TI ME PRESCRIBED UNDER THE P.F.ACT. I ALSO FIND THAT NO DISALLOWANCE CAN BE MADE FOR DEDUCTION OF THE SAME U/S.36(1)(VA) R.W.S.2(24)(X) OF THE ACT IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF RAJASTHAN STATE BEVERAGES CORPORATION LTD., [201 7] 84 TAXMANN.COM 185 (SC), WHERE IT WAS HELD AS UNDER : - SECTION 43B, READ WITH SECTION 36(1)(VA), OF THE INCOME - TAX ACT, 1961 - BUSINESS DISALLOWANCE - CERTAIN DEDUCTIONS TO BE ALLOWED ONLY ON ACTUAL PAYMENT (PF AND ESI CONTRIBUTION) - HIGH COURT BY IM PUGNED ORDER HELD THAT AMOUNT CLAIMED ON PAYMENT OF PF AND ESI HAVING BEEN DEPOSITED ON OR BEFORE DUE DATE OF FILING OF RETURNS, SAME COULD NOT BE DISALLOWED UNDER SECTION 43B OR UNDER SECTION 36(1)(VA) - WHETHER SLP AGAINST SAID IMPUGNED ORDER WAS TO BE D ISMISSED - HELD, YES [PARA 2] [IN FAVOUR OF ASSESSEE] 9 . IN THE PRESENT CASE, NEITHER THE AO NOR THE LD. CIT(A) HAS DISPUTED THE FACT THAT THE ASSESSEE HAS DEPOSITED THE IMPUGNED AMOUNT OF EPF BEFORE DUE DATE OF FILING OF RETURN U/S.139(1) OF THE ACT. TH EREFORE, RESPECTFULLY FOLLOWING THE RATIO LAID DOWN BY THE HON BLE SUPREME COURT IN THE CASE OF RAJASTHAN STATE BEVERAGES CORPORATION LTD(SUPRA) , I DIRECT THE AO TO ALLOW THE CLAIM OF THE ASSESSEE REGARDING EPF. ACCORDINGLY, THE SOLE ISSUE/ GROUND OF APPEA L OF THE ASSESSEE IS ALLOWED. 1 0 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 05 / 02 / 201 9 . SD/ - ( CHANDRA MOHAN GARG ) / JUDICIAL MEMBER CUTTACK ; DATED 05 / 02 /201 9 . . / PKM , SENIOR PRIVATE SECRETARY ITA NO. 342 /CTK/2018 4 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, C UTTACK 1. / THE APPELLANT - THE PURI DISTRICT CO - OPERATIVE MILK PRODUCER S UNION LIMITED,CHINTAMANISWAR, KALPANA AREA, BHUBANESWAR 2. / THE RESPONDENT - ITO, WARD - 2(2), BHUBANESWAR 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. [ / GUARD FILE. //TRUE COPY//