Income Tax Officer, Bangalore V. M/s Colour Lines Clothing India Pvt Ltd, Bangalore

ITA 431/BANG/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7410 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 22-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMER SINGH MEENA BENGALURU
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.431/BANG/2017 ASSESSMENT YEAR : 2013-14 THE INCOME TAX OFFICER, WARD 2(1)(2), BANGALORE. VS. M/S. COLOUR LINES CLOTHING INDIA PVT. LTD., NO.96, 29 TH MAIN ROAD, BTM 2 ND STAGE, BANGALORE 560 076, PAN: AADCC 3330R APPELLANT RESPONDENT APPELLANT BY : SHRI SUMER SINGH MEENA, ADDL. CIT(DR)(ITAT), BENGALURU RESPONDENT BY : NONE DATE OF HEARING : 12.10.2017 DATE OF PRONOUNCEMENT : 31.10.2017 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE CIT(APPEALS) INTER ALIA ON THE FOLLOWING GROUNDS:- 1) THE ORDER OF THE LEARNED CIT (A) IS OPPOSED TO THE LAW AND FACTS OF THE CASE. 2) THE LEARNED CIT (A) ERRED IN ALLOWING BELATED R EMITTANCE OF EMPLOYEE'S CONTRIBUTION TO EPF / ESI AS A DEDUCT ION IF IT IS PAID BEFORE THE DUE DATE FOR FILING OF THE RETURN O F INCOME AS ITA NO.431/BANG/2017 PAGE 2 OF 3 SPECIFIED U/S 139(1) OF THE ACT, WHEREAS THE EMPLOY EE'S CONTRIBUTION TO PF/ESI CAN BE ALLOWED AS A DEDUCTIO N ONLY IF THE PAYMENTS WERE MADE WITHIN THE SPECIFIED DUE DATES U NDER PF /ESI ACT. 3) THE CIT (A) ERRED IN NOT APPRECIATING THE FACT THAT THE BELATED REMITTANCE OF EMPLOYEE'S CONTRIBUTION TO PF /ESI ARE TO BE TREATED AS INCOME OF THE ASSESSES IN TERMS OF THE P ROVISIONS OF SECTION 2(24)(X) R.W.S 36(1)(VA) OF THE ACT AND THE REFORE, THE PROVISO TO SECTION 43B IS NOT APPLICABLE. 4) FOR THESE AND ANY OTHER GROUNDS THAT MAY ARISE AT THE TIME OF HEARING, IT IS HUMBLY PRAYED THAT THE ORDER OF T HE CIT (A) BE REVERSED ON THE ABOVE ISSUE AND THAT OF THE ASSESSI NG OFFICER MAY BE RESTORED. 2. THIS APPEAL CAME UP FOR HEARING ON 12.10.2017, BUT NONE APPEARED FOR THE ASSESSEE. 3. HAVING CAREFULLY EXAMINED THE GROUNDS OF APPEAL , WE FIND THAT THIS APPEAL CAN BE DISPOSED OF EVEN IN THE ABSENCE OF TH E ASSESSEE. WE ACCORDINGLY HEARD THE APPEAL. 4. WE HAVE CAREFULLY PERUSED THE GROUNDS OF APPEAL AND THE ORDER OF CIT(APPEALS) AND WE FIND THAT THE CIT(APPEALS) HAS ADJUDICATED THE ISSUE, FOLLOWING THE JUDGMENT OF THE HON'BLE JURISDICTIONA L HIGH COURT IN THE CASE OF SABARI ENTERPRISES, (2008) 298 ITR 141 HAVING NOTED THAT THE PAYMENTS WERE MADE BEFORE THE FILING OF RETURN OF INCOME, TH EREFORE THE EXPENDITURE IS TO BE ALLOWED U/S. 43B OF THE ACT. SINCE THE CIT(A PPEALS) HAS ADJUDICATED THE ISSUE FOLLOWING THE JUDGMENT OF THE HON'BLE JUR ISDICTIONAL HIGH COURT, WE ITA NO.431/BANG/2017 PAGE 3 OF 3 FIND NO INFIRMITY IN THE ORDER OF THE CIT(APPEALS). ACCORDINGLY THE ORDER OF CIT(APPEALS) IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF OCTOBER, 2017. SD/- SD/- ( A.K. GARODIA ) ( SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 31 ST OCTOBER, 2017. / D ESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.