Paramount Trading Corporation, V. Addl. CIT, Range-1,

ITA 439/DEL/2005

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1347 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2009
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 14-10-2009
• Assessment Year: 2001-2002
• Appeal Filed On: 31-01-2005
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHRLI G S SAHOTA
• Assessee Lawyers: P K MISRACA
• Section: 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `E : NEW DELHI) BEFORE SHRI A.D. JAIN, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.439/DEL./2005 (ASSESSMENT YEAR : 2001-02) PARAMOUNT TRADING CORPORATON, VS. ADDL. CIT, RANGE 1, C/O KANSAL KAPOOR & CO. MORADABAD. KOTHIWAL NAGAR, STATION ROAD, MORADABAD 244001. (PAN/GIR NO.AAACS6908G) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P.K. MISRA,CA. REVENUE BY : SHRLI G.S. SAHOTA, SR.DR ORDER PER A.K. GARODIA: AM THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE O RDER OF THE CIT(A), BAREILLY DATED 24.11.2004 FOR ASSESSMENT YEAR 2001-02. OUT OF 7 GROUNDS RAISED BY THE ASSESSEE, THE ASSESSEE DID NOT PRESS OTHER GROUNDS EXCEPT GRO UND NO.4, WHICH IS AGAINST THE ENHANCEMENT OF RS.4,60,966 OUT OF P.F. DUES BY ALLE GING THAT THESE PAYMENT HAVE BEEN MADE AFTER DUE DATES. 2. BEFORE US, LD.AR OF THE ASSESSEE SUBMITTED THAT THIS ISSUE IS NOW COVERED BY THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CAS E OF P.M. ELECTRONICS LTD., 313 ITR 161 IN WHICH HONBLE DELHI HIGH COURT HAS RELIED O N THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. VINAY CEMENT L TD., 213 CTR 268 AND CIT VS. DHARMENDRA SHARMA, 297 ITR 320. 3. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. THE ASSESSING OFFICER HAS DISALLOWED EMPLOYEES CON TRIBUTION TOWARDS PF ON THE GROUND THAT THE SAME WERE DEPOSITED BEYOND THE DUE DATE AL LOWED UNDER RESPECTIVE STATUTE. THE ASSESSEE HAD FILED DETAILS, ACCORDING TO WHICH, THE PAYMENT OF EMPLOYEES CONTRIBUTION TO EPF HAVE NOT BEEN MADE BY DUE DATES INCLUDING THE G RACE PERIOD. HOWEVER, WE FIND THAT THE PAYMENTS HAVE BEEN MADE BEFORE THE DUE DATE OF FILING OF THE RETURN OF INCOME. THUS, I.T.A. NO.439/DEL./2005 (A.Y. : 2001-02) 2 THIS ISSUE IS NOW COVERED BY THE DECISION OF HONBL E DELHI HIGH COURT IN THE CASE OF CIT VS. P. M. ELECTRONICS LTD. (SUPRA). IN THIS CASE H ONBLE DELHI HIGH COURT HAS FOLLOWED THE DECISION OF HONBLE MADRAS HIGH COURT IN THE CA SE OF CIT VS. NEXUS COMPUTERS PVT. LTD. DATED 18/08/2008 PASSED IN TAX CASE (A) NO. 11 92 / 2008 WHEREIN THE HONBLE MADRAS HIGH COURT HAD DISCUSSED THE IMPACT OF DISMI SSAL OF SPECIAL LEAVE PETITION IN THE CASE OF CIT VS. GEORGE WILLIAMSON (ASSAM) LTD. 284 ITR 613 (GUJ.) AND CIT VS. VINAY CEMENT, 213 CTR 268. THE DIVISION BENCH OF HONBLE MADRAS HIGH COURT HAD EXPLAINED THE EFFECT OF DISMISSAL OF SPECIAL LEAVE PETITION B Y A SPEAKING ORDER BY RELYING UPON THE JUDGEMENT OF HONBLE SUPREME COURT IN THE CASE OF K UNHAYAMMED AND OTHERS VS. STATE OF KERALA AND ANOTHER 119 STC 505 (KER). HONBLE D ELHI HIGH COURT IN THE CASE OF CIT VS. P. M. ELECTRONICS LTD. (SUPRA) ALSO CONSIDERED THE DECISION OF DIVISION BENCH IN THE CASE OF CIT VS. DHARMENDRA SHARMA 297 ITR 320. IT HAS BEEN HELD THAT THE ASSESSEE WILL BE ENTITLED FOR DEDUCTION ON ACCOUNT OF DELAYED PAY MENT OF EMPLOYEES/ EMPLOYERS CONTRIBUTION TOWARDS PROVIDENT FUND AND ESI WHERE P AYMENTS WERE MADE AFTER DUE DATE PRESCRIBED UNDER RESPECTIVE STATUTE BUT BEFORE THE DUE DATE OF FURNISHING THE RETURN OF INCOME UNDER SECTION 139(1) OF THE ACT. RESPECTFUL LY FOLLOWING THIS JUDGMENT, IT IS HELD THAT THE ASSESSEE IS ENTITLED FOR DEDUCTION ON ACCO UNT OF PF BECAUSE THE PAYMENTS WERE MADE BFORE DUE DATE OF FILING OF RETURN OF INCOME. WE, THEREFORE, REVERSE THE ORDER OF LD. CIT (APPEALS) AND DIRECT THE ASSESSING OFFICER TO A LLOW THE CLAIM OF THE ASSESSEE. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED 5. ORDER PRONOUNCED IN OPEN COURT ON THE DATE OF HE ARING I.E. 14.10.2009. (A.D. JAIN) (A.K. GARODIA) JUDICIAL MEMBER. ACCOUNTANT MEMBER *SKB* DATED, OCT. 14, 2009. COPY FORWARDED TO:- 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A), BAREILLY. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT, NEW DELHI I.T.A. NO.439/DEL./2005 (A.Y. : 2001-02) 3