The Assistant Commissioner of Income Tax, Circle-4(1), Visakhapatnam V. Kimidi Surapu Naidu Jute Twine Industries Private Limited, Srikakulam

ITA 416/VIZ/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7697 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 14-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Section: 143(3); 201; 13; 20

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER& SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ I.T. A.NO. 41 6 /VIZ/201 9 ( / A SSESSMENT Y EAR : 20 1 5 - 1 6 ) ASST. COMMISSIONER OF INCOME TAX CIRCLE - 4(1) VISAKHAPATNAM VS. M/S SRI KIMIDI SURAPU NAIDU JUTE TWINE INDUSTRIES PVT. LTD. REGIDI MANDAL AMADALAVALASA SRIKAKULAM [PAN : AACCS4238F] ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : S MT.SUMAN MALIK, DR / RESPONDENT BY : NONE / DATE OF HEARING : 2 6 . 0 9 . 201 9 / DATE OF PRONOUNCEMENT : 30 . 10 . 201 9 / O R D E R P ER SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER : DELAY : THERE WAS A DELAY OF 13 DAYS IN FILING THE APPEAL BY THE REVENUE. THE REVENUE FILED PETITION FOR CONDONATION OF DELAY, STATING THAT THE DELAY WAS DUE TO ADMINISTRATIVE REASONS AND REQUESTED TO CONDONE THE DELAY. AFTER GOING THROUGH THE CONDONATION PETITION FILED, WE OBSERVE THAT THERE IS 2 I.T.A. NO . 4 1 6 /VIZ/2019 , A.Y.20 1 5 - 1 6 SRI KIMIDI SURAPU NAIDU JUTE TWINE INDUSTRIES PVT. LTD , SRIKAKULAM SUFFICIENT CAUSE FOR THE DELAY IN FILING THE APPEAL, HENCE, WE CONDONE THE DELAY AND ADMIT THE APPEAL. TH IS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX ( APPEALS ) [CIT( A )] , IN APPEAL NO. 41/2018 - 19/ACIT, CIRCLE - 4(1)/VSKP/CIT(A) - 11/2018 - 19 DATED 19 . 02 .201 9 FOR THE ASSESSMENT YEAR (A.Y.) 2015 - 16. 2. IN THIS CASE, THE ASSESSMENT WAS COMPLETED U/S 143(3) BY AN ORDER DATED 18.12.2017 AND IN THE ASSESSMENT, THE ASSESSING OFFICER (AO) MADE THE ADDITION OF RS.4,84,346/ - U/S 36(1)(VA) R.W.S.2(24)(X) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). THE ASSESSEE HAS COLLECTED THE CONTRIBUTIONS TOWARDS PROVIDENT FUND FROM THE EMPLOYEES, BUT NOT REMITTED TO THE PROVIDENT FUND ACCOUNT BEFORE THE DUE DATE OF PAYMENT AS SPECIFIED UNDER THE PROVIDENT FUND ACT. HOWEVER, THE SAID CONTRIBUTIONS WERE REMITTED TO THE CONCE RNED ACCOUNT BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME. HENCE, THE AO MADE THE ADDITION U/S 2(24)(X) R.W.S.36(1)(VA) OF THE ACT. 3. AGAINST THE ORDER OF THE AO, THE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) ALLOWED THE APPEAL O F THE ASSESSEE FOLLOWING THE DECISION OF ASSESSEES OWN CASE FOR THE A.Y.2012 - 13 & 2013 - 14 WHERE THE 3 I.T.A. NO . 4 1 6 /VIZ/2019 , A.Y.20 1 5 - 1 6 SRI KIMIDI SURAPU NAIDU JUTE TWINE INDUSTRIES PVT. LTD , SRIKAKULAM DECISION IN THE CASE OF M/S EASTERN POWER DISTRIBUTION COMPANY OF AP LTD. IN I.T.A. NO.609/VIZ/2014 DATED 29.07.2016 WAS FOLLOWED. 4. AGAINST THE ORDER OF THE LD.CIT(A), THE DEPARTMENT HAS FILED APPEAL BEFORE THIS TRIBUNAL. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. THIS TRIBUNAL HAS TAKEN A VIEW THAT EMPLOYEES CONTRIBUTION TO PF REQUIRED TO BE ALLOWED AS DEDUCTION, IF THE SAME IS REMITTED TO THE EMPLOYEES PROVIDENT FUND ACCOUNT BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME , IN M/S EASTERN POWER DISTRIBUTION COMPANY OF A.P. LTD IN I.T.A. NO.374/VIZ/2017 DATED 20.09.2017 AND ALSO IN THE CASE OF M/S BHARAT HEAVY PL ATES AND VESSELS LTD., VISAKHAPATNAM IN I.T.A.NO.457/VIZ/2019 DATED 30.09.2019 , FOLLOWING THE DECISION OF HONBLE KARNATAKA HIGH COURT IN THE CASE OF ESSAE TEROKA (P) LTD. (SUPRA). FOR THE SAKE OF CLARITY AND CONVENIENCE, WE EXTRACT RELEVANT PART OF THE O RDER OF THE ITAT IN THE CASE OF M/S BHARAT HEAVY PLATES AND VESSELS LTD., VISAKHAPATNAM (SUPRA) WHICH READS AS UNDER : 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. THIS TRIBUNAL HAS TAKEN A VIEW THAT DEDUCTION OF EMPLOYEES CONTRIBUTION REQUIRED TO BE ALLOWED IF THE SAME IS REMITTED TO THE EMPLOYEES PROVIDENT FUND ACCOUNT BEFORE THE DUE DATE FOR FILING THE RETURN OF INCOME IN THE CASE OF M/S EASTERN POWER DISTRIBUTION COMPANY OF A.P. LTD IN I.T.A. NO.374/VIZ/2017 DATED 20 .09.2017 AND ALSO IN THE CASE OF M/S MIRACLE 4 I.T.A. NO . 4 1 6 /VIZ/2019 , A.Y.20 1 5 - 1 6 SRI KIMIDI SURAPU NAIDU JUTE TWINE INDUSTRIES PVT. LTD , SRIKAKULAM SOFTWARE SYSTEMS (INDIA) PVT. LTD. VIDE I.T.A. NO.150/VIZ/2019 DATED 07.08.2019, FOLLOWING THE DECISION OF HONBLE KARNATAKA HIGH COURT IN THE CASE OF ESSAE TEROKA (P) LTD. (SUPRA), FOR THE SAKE OF CLARITY AND CONVENIENCE, WE EXTRACT RELEVANT PART OF THE ORDER OF THE ITAT IN THE CASE OF M/S MIRACLE SOFTWARE SYSTEMS (INDIA) PVT. LTD. (SUPRA) WHICH READS AS UNDER : 9. WE HAVE HEARD BOTH THE PARTIES AND FIND THAT THE ASSESSEE HAS REMITTED THE EMPLOYEES CONTRIBUTION TO P.F BEYOND THE DUE DATE SPECIFIED UNDER P.F ACT, BUT BEFORE THE DUE DATE FOR FILING THE RETURN OF INCOME. THIS TRIBUNAL HAS CONSISTENTLY TAKEN THE VIEW TH AT THE DEDUCTION IS TO BE ALLOWED EVEN IN CASE OF EMPLOYEES CONTRIBUTION I S PAID BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME. THE TRIBUNAL HAS FOLLOWED THE DECISION OF HONBLE KARNATAKA HIGH COURT IN THE CASE OF ESSAE TERAOKA PVT LTD. VS. DCIT [366 ITR 408] AND THE DECISION OF ITAT, HYDERABAD IN THE CASE OF TETRA SOFT INDIA PVT. TD. VS. ACIT (2015) (40 ITR TRIBUNAL 470) WHILE DELIVERING THE ABOVE RULING. FURTHER THIS TRIBUNAL ON IDENTICAL FACTS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE IN ITS OR DER IN I.T.A NO.485/VIZ/2018 DATED 25.01.2019. SINCE THE LD.CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE FOLLOWING THE ORDER OF THIS TRIBUNAL, WE FIND NO REASON TO INTERFERE WITH THE ORDER OF THE CIT(A), ACCORDINGLY THE REVENUES APPEAL IN GROUND NO.5 TO 8 ARE DISMISSED. 5.1. RESPECTFULLY FOLLOWING THE VIEW TAKEN BY THIS TRIBUNAL, WE UPHOLD THE ORDER OF THE LD.CIT(A) AND DISMISS THE APPEAL OF THE REVENUE. 6 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH OCTOBER, 2019 S D/ - S D/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 30 . 10 .2019 L.RAMA, SPS 5 I.T.A. NO . 4 1 6 /VIZ/2019 , A.Y.20 1 5 - 1 6 SRI KIMIDI SURAPU NAIDU JUTE TWINE INDUSTRIES PVT. LTD , SRIKAKULAM / COPY OF THE ORDER FORWARDED TO: - 1 . / THE REVENUE ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 4(1), VISAKHAPATNAM 2 . / THE ASSESSEE - M/S SRI KIMIDI SURAPU NAIDU JUTE TWINE INDUSTRIES PVT. LTD., REGIDI MANDAL, AMADALAVALASA, SRIKAKULAM 3. THE PR. COMMISSIONER OF INCOME TAX ( CENTRAL ) , VISAKHAPATNAM 4. THE COMMISSIONER OF INCOME TAX (APPEALS) - 11, HYDERABAD 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM