Daily Express LLP, Alappuzha V. The ITO, Wd-1, Alappuzha

ITA 394/COCH/2018

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 4107 (ITAT-COCHIN)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-10-2018
• Assessment Year: 2015-2016
• Appeal Filed On: 23-08-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A.S.BINDHU
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI CHANDRA POOJAR I, AM & SHRI GEORGE GEORGE K, JM ITA NO. 394 /COCH/201 8 : ASST.YEAR 201 5 - 201 6 M/S.DAILY EXPRESS (LLP) C/O.M/S.RANGAMANI & CO. CHARTERED ACCOUNTANTS CARD BANK BUILDING IIND FLOOR, V.C.S.B.ROAD ALLAPPEY - 688 001. PAN : AAIFD1341F. VS. THE INCOME - TAX OFFICER WARD 1 ALAPPUZHA. ( APPLICANT ) (RESPONDENT) APPELLANT BY : SRI.R.SREENIVASAN RESPONDENT BY : SMT. A.S.BINDHU, SR.DR DATE OF HEARING : 10 .10.2018 DATE OF PRONOUNCEMENT : 11 .10.2018 O R D E R PER GEORGE GEORGE K., JM THIS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST CIT(A)S ORDER DATED 09.07.2018. THE RELEVANT ASSESSMENT YEAR IS 2015 - 2016. 2. THE SOLITARY ISSUE FOR CONSIDERATION IS WHETHER THE CIT(A) IS JUSTIFIED IN CONFIRMING THE ASSESSMENT ORDER, WHEREIN BELATED REMITTANCE OF EMPLOYEES CONTRIBUTION TO EPF AND ESI U/S 36(1)(VA) OF THE I.T.ACT. 3. BRIEF FACTS OF THE CASE ARE AS FOLLOWS: - THE ASSESSING OFFICER HAD DISALLOWED A SUM OF RS.5,42,357, BEING EMPLOYEES CONTRIBUTION TOWARDS ESI & PF SINCE THE PAYMENT WAS NOT MADE WITHIN THE DUE DATE SPECIFIED ITA NO. 394 /COCH/201 8 . M/S. DAILY EXPRESS (LLP) . 2 IN THE RESPECTIVE STATUTES. THE RELEVANT OBSERVATION OF THE ASSESSING OFFICER READS AS FO LLOWS: - 16. ON VERIFICATION OF THE RECORDS IT HAS BEEN NOTICED THAT DURING THE YEAR THE ASSESSEE COLLECTED RS.72,210/ - AS EMPLOYEES CONTRIBUTION TOWARDS ESI AND RS.4,70,147/ - AS EMPLOYEES CONTRIBUTION TOWARDS PF, THE AGGREGATE OF WHICH COMES TO RS.5,42,357/ - . FO R GETTING DEDUCTION ON THIS AMOUNT THE ASSESSEE HAS TO REMIT THE AMOUNT SO DEDUCTED ON OR BEFORE THE DUE DATE SPECIFIED, AS ENVISAGED IN SECTION 36(1)(VA). VERIFICATION OF THE RECORDS REVEALS THAT THE ASSESSEE FAILED TO REMIT THE AMOUNT WITHIN THE DUE DATE SPECIFIED. AS SUCH RS.5,42,357/ - COLLECTED AS EMPLOYEES CONTRIBUTION TO ESI AND PF AND NOT REMITTED WITHIN THE DUE DATE IS HEREBY ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 4. AGGRIEVED BY THE CONFIRMATION OF DISALLOWANCE, THE ASSESSEE PREFERRED AN APPE AL BEFORE THE FIRST APPELLATE AUTHORITY. THE CIT(A) FOLLOWING THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT V. MERCHEM LIMITED [(2015) 378 ITR 443 (KER.)] , DISMISSED THE APPEAL OF THE ASSESSEE. 5. THE ASSESSEE BEING AGGRIEVED BY THE CIT(A) S ORDER, HA S FILED THE PRESENT APPEAL BEFORE THE TRIBUNAL. THE LEARNED AR SUBMITTED THAT THE EMPLOYEES CONTRIBUTIONS RECEIVED BY THE ASSESSEE WERE PAID BEFORE THE DATE OF THE FILING OF THE RETURN, AND HENCE, WAS AN ALLOWABLE DEDUCTION. THE LEARNED DEPARTMENTAL REPRE SENTATIVE, ON THE OTHER HAND, SUBMITTED THAT THE ISSUE IN QUESTION IS SQUARELY COVERED IN FAVOUR OF THE REVENUE BY THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF MERCHEM LIMITED (SUPRA). ITA NO. 394 /COCH/201 8 . M/S. DAILY EXPRESS (LLP) . 3 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERU SED THE MATERIAL ON RECORD. THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF MERCHEM LIMITED (SUPRA) HAD CATEGORICALLY HELD THAT EMPLOYEES CONTRIBUTION TO PF AND ESI, IF NOT PAID WITHIN THE DUE DATE MENTIONED IN THE RESPECTIVE STATUTE CANNOT BE ALLOWED AS A DEDUCTION U/S 36(1)(VA) OF THE I.T.ACT. THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF MERCHEM LIMITED (SUPRA) HAD CONSIDERED THE JUDICIAL PRONOUNCEMENTS ON THE ISSUE AND HAD TAKEN A DECISION IN FAVOUR OF THE REVENUE. THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF HONBLE JU RISDICTIONAL HIGH COURT IN THE CASE OF MERCHEM LIMITED (SUPRA) WAS FOLLOWED BY THE RECENT JUDGMENT OF THE HONBLE KERALA HIGH COURT IN THE CASE OF ALLIAZ CORHILL INFORMATION SERVICES (P) LTD. V. DCIT [(2018) 406 ITR 150 (KER.)] . IN VIEW OF THE ABOVE JUDICI AL PRONOUNCEMENT OF THE HONBLE JURISDICTIONAL HIGH COURT, WE HOLD THAT THE ASSESSING OFFICER HAS CORRECTLY DISALLOWED THE SUM OF RS.5,42,537. THEREFORE, THE CIT(A)S ORDER CONFIRMING THE ASSESSMENT ORDER DOES NOT REQUIRE ANY INTERFERENCE AND THE SAME IS U PHELD. IT IS ORDERED ACCORDINGLY. 7. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 11 TH DAY OF OCTOBER, 2018 . SD/ - SD/ - ( CHANDRA POOJARI ) ( GEORGE GEORGE K ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN ; DATED : 11 TH OCTOBER, 2018 . DEVDAS* ITA NO. 394 /COCH/201 8 . M/S. DAILY EXPRESS (LLP) . 4 COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, COCHIN 1. THE APPLICANT. 2. THE RESPONDENT. 3. THE CIT (A) - KOTTAYAM 4. THE PR. CIT , KOTTAYAM . 5. DR, ITAT, COCHIN 6. GUARD FILE.