Shri Ram Fire Works Pvt. Ltd., Rajkot V. Income Tax Officer, Ward-2 (1) (4), Rajkot

ITA 390/RJT/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6493 (ITAT-RAJKOT)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 04-05-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 22-10-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B.R. MISHRA
• Assessee Lawyers: RANJIT D. LALCHANDANI
• Section: 43B; 139(1); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNA L RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AH MEDABAD] (BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI WASEEM AHMED, ACCOUNTANT MEMBER) ITA. NO: 390/RJT/2018 (ASSESSMENT YEAR: 2015-16) SHRI RAM FIRE WORKS PVT. LTD. CANAL ROAD, OPP: HATHIKHANA RAJKOT-360001 V/S THE INCOME TAX OFFICER, WARD-2(1)(4), RAJKOT (APPELLANT) (RESPONDENT) PAN: AABCR0148J APPELLANT BY : SHRI RANJIT D. LALCHANDAN I, A.R. RESPONDENT BY : SHRI B.R. MISHRA, SR. D.R. ( )/ ORDER DATE OF HEARING : 12 -03-201 9 DATE OF PRONOUNCEMENT : 20 -03-2019 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. CIT(A)-2, RAJKOT DATED 03.08.2018 PERTAINING TO A.Y . 2015-16 AND FOLLOWING GROUND HAS BEEN TAKEN: ITA NO. 390/ RJT/2018 . A.Y. 2015-16 2 1.THE CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE O F RS. 3,89,372/- UNDER THE PROVISIONS OF SECTION 36(1)(VA) OF THE ACT. 2. IN THIS CASE, THE LD. A.O. HAS DISALLOWED THE AMOUN T OF RS. 3,89,372/- UNDER THE PROVISIONS OF SECTION 36(1)(VA) OF THE ACT. THE A.O . HAS HELD THAT SINCE THE PAYMENTS WERE PAID TO THE GOVERNMENT BEYOND THE DUE DATE THE SAME WERE DISALLOWABLE. THEREAFTER IN APPEAL LD. CIT(A) CONFI RMED ACTION OF THE A.O. 3. BEFORE US, LD. A.R. FAIRLY CONCEDED THAT THIS CASE IS AGAINST THE ASSESSEE THE HONBLE HIGH COURT IN THE MATTER OF GSRTC 366 ITR 1 70 WHEREIN IT IS HELD: 'SECTION 43B, READ WITH SECTION 36(1)(VA) OF THE INC OME-TAX ACT, 1961 - BUSINESS DISALLOWANCE - CERTAIN DEDUCTIONS TO BE ALLOWED ON ACTUAL PAYMENT (EMPLOYEES CONTRIBUTION) - WHETHER WHERE AN EMPLOYER HAS NOT C REDITED SUM RECEIVED BY IT AS EMPLOYEES' CONTRIBUTION TO EMPLOYEES' ACCOUNT IN RELEVANT FUND ON OR BEFORE DUE DATE AS PRESCRIBED IN EXPLANATION TO SECTION 36 (1)(VA), ASSESSEE SHALL NOT BE ENTITLED TO DEDUCTION OF SUCH AMOUNT THOUGH HE DEPO SITS SAME BEFORE DUE DATE PRESCRIBED UNDER SECTION 43B I. E., PRIOR TO FILING OF RETURN UNDER SECTION 139(1) - HELD, YES - ASSESSEE STATE TRANSPORT CORPORATION CO LLECTED A SUM BEING PROVIDENT FUND CONTRIBUTION FROM ITS EMPLOYEES - HOWEVER, IT HAD DEPOSITED LESSER SUM IN PROVIDENT FUND ACCOUNT -ASSESSING OFFICER DISALLOWE D SAME UNDER SECTION 43B - HOWEVER, COMMISSIONER (APPEALS) DELETED DISALLOWANC E ON GROUND THAT EMPLOYEES CONTRIBUTION WAS DEPOSITED BEFORE FILING RETURN - WHETHER SINCE ASSESSEE HAD NOT DEPOSITED SAID CONTRIBUTION IN RES PECTIVE FUND ACCOUNT ON DATE AS PRESCRIBED IN EXPLANATION TO SECTION 36(1)(VA), DISALLOWANCE MADE BY ASSESSING OFFICER WAS JUST AND PROPER - HELD, YES [PARA 8] [I N FAVOUR OF REVENUE] 4. IN VIEW OF THE AFORESAID GSRTC CASE, APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 20 - 03- 2019 SD/- SD/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 20 /03/2019 ITA NO. 390/ RJT/2018 . A.Y. 2015-16 3 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD