The Agriculture Produce Market Committee, Mehsana V. The Income tax Officer,Patan Ward-4, Ahmedabad

ITA 3438/AHD/2009

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6403 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 30-12-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVETIA
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, B BENCH (BEFORE S/SHRI G.D. AGARWAL, VICE-PRESIDENT AND T.K. SHARMA, JUDICIAL MEMBER) ITA NO.3438/AHD/2009 [ASSTT. YEAR : 2006-2007] THE AGRICULTURAL PRODUCE MARKET COMMITTEE, KADI MEHSANA. PAN : AAAAT 6357 J VS. ITO, PATAN, WARD-4 AHMEDABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.N. DIVETIA REVENUE BY : SHRI SAMIR TEKRIWAL O R D E R PER G.D. AGARWAL, VICE-PRESIDENT : THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF IN COME-TAX (APPEALS), GANDHINAGAR DATED 16.10.2009 FOR A.Y.2006-2007. 2. THE ONLY GROUND RAISED IN THIS APPEAL OF THE ASS ESSEE IS AGAINST THE DISALLOWANCE OF RS.5,35,722/- BEING THE PROVIDENT F UND AND GRATUITY. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE HAS NOT DEPOSITED THE PF & GRATUITY WITH THE REGIONAL PROVIDENT FUND OFFICE. THEREFORE, THE AO BY INVOKING THE PROVISIONS OF SECTION 43B DISALLOWE D THE SAME, WHICH IS SUSTAINED BY THE CIT(A), HENCE, THIS APPEAL BY THE ASSESSEE. 4. AT THE TIME OF HEARING BEFORE US, IT IS STATED B Y THE LEARNED COUNSEL THAT THE ASSESSEE HAS NOT DEPOSITED THE AMOUNT WITH THE PF AUTHORITIES BUT HAS KEPT THE SAID AMOUNT UNDER SEPARATE BANK DEPOSI TS. THAT WHEN THE EMPLOYEE RETIRES, SUCH DEPOSIT IS UTILIZED FOR THE PAYMENT OF PF/GRATUITY TO SUCH EMPLOYEE. THEREFORE, THE ASSESSEE IS NOT U TILISING THE MONEY, BUT HAS KEPT THE MONEY SEPARATELY. THUS, THE PROVISION OF SECTION 43B DOES ITA NO.3438/AHD/2009 -2- NO APPLY. THE LEARNED DR, ON THE OTHER HAND, RELIE D UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. AS PER THE SECTION 43B, THE ASSESSEE AS AN EMPLOYER IS REQUIRED TO DEPOSIT THE PF, SUPERANNUATION FUND OR GRATUITY OF ANY EMPLOYEE WITH THE CONCERNED AUTHORITIES BEFORE THE DUE DATE OF FI LING OF THE RETURN. ADMITTEDLY, THE ASSESSEE HAS NOT COMPLIED WITH THE PROVISIONS OF SECTION 43B, THEREFORE, IN OUR OPINION, THE DISALLOWANCE WA S RIGHTLY SUSTAINED BY THE CIT(A). HIS ORDER IS UPHELD AND THE ASSESSEES APPEAL IS REJECTED. 6. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 13 TH JUNE, 2011 SD/- SD/- (T.K. SHARMA) JUDICIAL MEMBER (G.D. AGARWAL) VICE-PRESIDENT PLACE : AHMEDABAD DATE : 13-06-2011 C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD 1. DATE OF DICTATION : 13-06-2011 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER. : 14-06-2011 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P.S./P.S : 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT. : 5. DATE ON WHICH FAIR ORDER PLACED BEFORE OTHER MEMBER : ITA NO.3438/AHD/2009 -3- 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P.S./P.S. : 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK. : 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK. : 15-06-2011 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER. : 10. DATE OF DESPATCH OF THE ORDER :