ACIT, CHENNAI V. M/s. Apollo Hospitals Enterprises Ltd., CHENNAI

ITA 3467/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8738 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 21-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M SUBASHRI
• Assessee Lawyers: T BANUSEKAR
• Keywords: Revised return
• Section: 143(3)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I T.A. NO. 3467/CHNY/2018 / ASSESSMENT YEAR:2012-13 & C.O. NO. 12/CHNY/2019 [IN I.T.A. NO. 3467/CHNY/2018] THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 3(1), CHENNAI 600 034. VS. M/S. APOLLO HOSPITALS ENTERPRISES PVT. LTD., NO. 21, ALI TOWERS, GREAMS ROAD, THOUSAND LIGHTS, CHENNAI 600 006. [PAN:AAACA5443N] (APPELLANT) (RESPONDENT/CROSS OBJECTOR) / APPELLANT BY : MS. M. SUBASHRI, JCIT / RESPONDENT BY : SHRI T. BANUSEKAR, C.A. / DATE OF HEARING : 01.04.2019 /DATE OF PRONOUNCEMENT : 02.04.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 3, CHENNAI DATED 31.08.2018 RELEVANT TO THE ASSESSMENT YEAR 2012-13. THE EFFECTIVE GROUND RAISED IN THE APPEAL OF THE REVENUE IS THAT THE LD. CIT(A) HAS ERRED IN DIRECTING TO DELETE DISALLOWANCE MADE UNDER SECTION 36(1)(VA) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] OF .1,21,62,869/- BEING EMPLOYEES CONTRIBUTION TO PROVIDENT I.T.A. NO. 3467/CHNY/18 & C.O. NO. 12/CHNY/19 2 FUND AND .79,20,255/- BEING EMPLOYEES CONTRIBUTION TO ESI. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012-13 ON 28.09.2012 ADMITTING TOTAL INCOME OF .111,33,81,000/- . SUBSEQUENTLY, THE ASSESSEE FILED REVISED RETURN OF INCOME ON 28.09.2012 ADMITTING TOTAL INCOME OF .112,07,53,280/-. THE CASE WAS TAKEN UP FOR SCRUTINY AND AGAINST STATUTORY NOTICES, ASSESSEE FURNISHED THE DETAILS. THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE ACT BY MAKING VARIOUS DISALLOWANCES. 3. WITH REGARD TO THE DISALLOWANCE OF DEDUCTION FOR EMPLOYEES CONTRIBUTION TO PF AND ESI DUE TO BELATED REMITTANCE, THE ASSESSEE HAS SUBMITTED BEFORE THE ASSESSING OFFICER THAT THOSE PAYMENTS WERE MADE BEFORE THE DUE DATE FOR FILING OF RETURN OF INCOME UNDER SECTION 139(1) OF THE ACT. HOWEVER, THE ASSESSING OFFICER TREATED THE DELAYED PAYMENTS REPRESENTING OF .1,21,62,869/- BEING EMPLOYEES CONTRIBUTION TO PROVIDENT FUND AND .79,20,255/- BEING EMPLOYEES CONTRIBUTION TO ESI AS INCOME OF THE ASSESSEE AND BROUGHT TO TAX UNDER SECTION 2(24)(X) R.W.S. 36(1)(VA) OF THE ACT. ON APPEAL, AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND BY FOLLOWING THE DECISION OF THE HONBLE MADRAS HIGH COURT IN THE CASE OF CIT V. INDUSTRIAL SECURITY AND INTELLIGENCE INDIA PVT. LTD. IN TCA NOS. 585 & I.T.A. NO. 3467/CHNY/18 & C.O. NO. 12/CHNY/19 3 586 OF 2015 & M.P. NO. 1 OF 2015 DATED 24.07.2015, THE LD. CIT(A) DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITION. 4. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. ON THE OTHER HAND, THE ASSESSEE FILED ITS CROSS OBJECTION. 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IN THIS CASE, THE ASSESSING OFFICER DISALLOWED AN AMOUNT OF .1,21,62,869/- IN RESPECT OF PROVIDENT FUND AND .79,20,255/- TOWARDS ESI AS THE SAID CONTRIBUTIONS HAVE NOT BEEN MADE WITHIN THE STATUTORY PERIOD GIVEN IN THE RELEVANT ACTS. HOWEVER, IT IS NOT DISPUTED BY THE REVENUE THAT THE ASSESSEE HAS NOT PAID THE EMPLOYEES CONTRIBUTION RECEIVED BY IT BEFORE THE DUE DATE OF FILING OF THE RETURN UNDER SECTION 139(1) OF THE ACT. VARIOUS COURTS INCLUDING THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT V. INDUSTRIAL SECURITY AND INTELLIGENCE INDIA PVT. LTD. (SUPRA) HELD THAT THERE CAN BE NO DEEMED ADDITION UNDER SECTION 36(1)(VA) R.W.S. 2(24)(X) OF THE ACT, IF THE IMPUGNED AMOUNT HAS BEEN PAID BEFORE THE DUE DATE OF FILING OF THE RETURN. THE LD. DR COULD NOT CONTROVERT THE ABOVE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT. IN VIEW OF THE ABOVE, WE SUSTAIN THE ORDER OF THE LD. CIT(A) IN DIRECTING THE ASSESSING OFFICER TO DELETE THE ADDITION AND THUS, THE GROUND RAISED BY THE REVENUE IS DISMISSED. I.T.A. NO. 3467/CHNY/18 & C.O. NO. 12/CHNY/19 4 6. SINCE WE HAVE SUSTAINED THE ORDER OF THE LD. CIT(A) ON THIS ISSUE, THE CROSS OBJECTION FILED BY THE ASSESSEE BECAME INFRUCTUOUS AND ACCORDINGLY DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE AS WELL AS CO FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON THE 02 ND APRIL, 2019 AT CHENNAI. SD/ - SD/ - (ABRAHAM P. GEORGE) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 02.04.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.