DCIT, Cochin V. M/s Geojit Financial Services, Cochin

ITA 362/COCH/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81333 (ITAT-COCHIN)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 21-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LATHA V KUMAR
• Assessee Lawyers: SATYANARAYANAN
• Section: 43B

Judgement Text

1 ITA NO. 362/COCH/2014 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI CHANDRA PO OJARI (AM) I.T.A NO. 362/COCH/2014 (ASSESSMENT YEAR 2006-07) DY.CIT, CIR.1(2) VS M/S GEOJIT FINANCIAL SERVIC ES KOCHI LTD, PADIVATTOM, KOCHI PAN : AABCG1935E (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. LATHA V KUMAR RESPONDENT BY : SHRI SATYANARAYANAN DATE OF HEARING : 24-09-2014 DATE OF PRONOUNCEMENT : 21-10-2014 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A)-II, KOCHI DATED 14-02-2014 AND PERTAINS TO ASSESSMENT Y EAR 2006-07. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DISAL LOWANCE OF CONTRIBUTION MADE TO THE EMPLOYEES CONTRIBUTION MA DE TO PROVIDENT FUND. 3. SMT. LATHA V KUMAR, THE LD.DR SUBMITTED THAT THE RE WAS A DELAY IN PAYMENT OF EMPLOYEES CONTRIBUTION TO PROVIDENT FUN D. ACCORDING TO THE 2 ITA NO. 362/COCH/2014 LD.DR, RS.34,61,879 BEING THE EMPLOYEES CONTRIBUTI ON WAS PAID TO THE PROVIDENT FUND ACCOUNT BEYOND THE DUE DATE. HENCE, THE ASSESSING OFFICER HAS DISALLOWED THE CLAIM OF THE ASSESSEE. HOWEVER, THE CIT(A) FOUND THAT THE PAYMENT WAS MADE WITHIN THE GRACE PERIOD. ACCO RDING TO THE LD.DR, THE PAYMENT HAS TO BE MADE WITHIN THE DUE DATE. TH EREFORE, THE CIT(A) IS NOT CORRECT IN HOLDING THAT THE PAYMENT MADE BEFORE THE DUE DATE FOR FILING THE RETURN OF INCOME IS ALLOWABLE. 4. ON THE CONTRARY, SHRI SATHYANARAYANAN, THE LD.RE PRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE PAYMENTS WERE MADE WITH IN THE GRACE PERIOD PROVIDED UNDER THE PROVIDENT FUND ACT. EVEN OTHERW ISE, THE PAYMENTS WERE MADE BEFORE THE DUE DATE FOR FILING THE RETURN OF INCOME. THEREFORE, THE CIT(A) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASS ESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. SECOND P ROVISO TO SECTION 43B WAS DELETED AND ALL SUB SECTIONS ARE BROUGHT UNDER FIRST PROVISO TO SECTION 43B. THEREFORE, THE PAYMENTS REFERRED IN SECTION 4 3B HAS TO BE ALLOWED IF IT IS PAID WITHIN THE DUE DATE PRESCRIBED FOR FILIN G THE RETURN OF INCOME U/S 139(1) OF THE ACT. IN THIS CASE, IT IS NOT IN DISP UTE THAT THE PAYMENT WAS MADE WITHIN THE DUE DATE FOR FILING THE RETURN OF I NCOME. FURTHERMORE, THE PAYMENT WAS MADE WITHIN THE GRACE PERIOD GRANTED BY THE PROVIDENT FUND 3 ITA NO. 362/COCH/2014 ACT. WHEN THE STATUTORY PROVISION GIVES GRACE PERI OD FOR PAYMENT OF THE CONTRIBUTION, THE AMOUNT PAID BY THE ASSESSEE HAS T O BE TREATED AS PAID WITHIN THE DUE DATE. IN VIEW OF THE PROVISIONS OF SECTION 43B, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE PAYMENT MADE WITHIN THE GRACE PERIOD HAS TO BE ALLOWED. ACCORDINGLY, THE ORDER OF THE L OWER AUTHORITY IS CONFIRMED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21 ST OCTOBER, 2014. SD/- SD/- (CHANDRA POOJARI) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 21 ST OCTOBER, 2014 PK/- COPY TO: 1. THE DY.CIT, CIR.1(2), KOCHI 2. M/S GEOJIT FINANCIAL SERVICES LTD, 34/659-P, CIV IL LINE ROAD, PADIVATTOM, KOCHI 682 024 3. THE COMMISSIONER OF INCOME-TAX, KOCHI 4. THE COMMISSIONER OF INCOME-TAX(A)-II, KOCHI 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH