Rajmahal Coal Mining Limited, Kolkata V. A.C.I.T., Circle - 7(2), Kolkaa, Kolkata

ITA 44/KOL/2023

AI Insights

Rajmahal Coal Mining Limited appealed against the order of the Commissioner of Income Tax (Appeals), which confirmed the disallowance of Rs.40,81,018 under section 36(1)(va) of the Income Tax Act. The disallowance was initially made by the Assessing Officer, who noted that the assessee did not deposit the employees' contributions to the Provident Fund within the prescribed due date. The assessee argued that the contributions were made in accordance with the Coal Mines Provident Fund Scheme, which allows deposits by the last day of the month. The Tribunal agreed with the assessee, noting that the CIT(Appeals) had misinterpreted the scheme's requirements.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129093 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-03-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 17-01-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

ITA No. 44/KOL/2023 Assessment Year: 2017-2018 Rajmahal Coal Mining Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Girish Agrawal, Accountant Member I.T.A. No. 44/KOL/2023 Assessment Year: 2017-2018 Rajmahal Coal Mining Limited,..................Appellant Industry House, 18 th Floor, 10, Camac Street, Kolkata-700017 [PAN: AAFCR8453E] -Vs.- Assistant Commissioner of Income Tax,....Respondent Circle-7(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Akkal Dudhewala, A.R., appeared on behalf of the assessee Smt. Ranu Biswas, Addl. CIT (DR), appeared on behalf of the Revenue Date of concluding the hearing : March 09, 2023 Date of pronouncing the order : March 16, 2023 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National ITA No. 44/KOL/2023 Assessment Year: 2017-2018 Rajmahal Coal Mining Limited 2 Faceless Appeal Centre (NFAC), Delhi dated 30.11.2022 passed for A.Y. 2017-18. 2. The solitary grievance of the assessee is that the ld. CIT(Appeals) has erred in confirming the disallowance of Rs.40,81,018/- with the aid of section 36(1)(va) of the Income Tax Act. 3. Brief facts of the case are that the assessee has filed its return of income on 31.10.2017 declaring total income at Rs.38,70,71,440/-. The case was selected for scrutiny assessment. A perusal of the record had revealed to the ld. Assessing Officer that the assessee did not make payment of employees’ contribution to Provident Fund Account within the due date prescribed under section 36(1)(va) of the Act. Accordingly he disallowed it. Before the ld. 1 st Appellate Authority, it was contended by the assessee that there is no delay in making the payments. The ld. Counsel for the assessee took us through the written submissions filed before the Tribunal. The synopsis of such submissions is available on pages 1 to 4 of the paper book, which reads as under:- ITA No. 44/KOL/2023 Assessment Year: 2017-2018 Rajmahal Coal Mining Limited 3 ITA No. 44/KOL/2023 Assessment Year: 2017-2018 Rajmahal Coal Mining Limited 4 ITA No. 44/KOL/2023 Assessment Year: 2017-2018 Rajmahal Coal Mining Limited 5 ITA No. 44/KOL/2023 Assessment Year: 2017-2018 Rajmahal Coal Mining Limited 6 4. Ld. Counsel for the assessee, at the very outset, submitted that in response to the notice, the assessee has pleaded that being a Company engaged in execration of coal, the Coal Mines Provident Fund Scheme is applicable upon the assessee and as per the Scheme, the employees’ contribution to Provident Fund is to be deposited upto the last day of the month and assessee has deposited the same. He took us through G.S.R. 1726 dated 11.09.1968, which has been amended subsequently. Copy of such regulation is placed as Annexure-C. 5. On the other hand, ld. D.R. was unable to controvert the contention of the ld. Counsel for the assessee. 6. On due consideration of the record, we are of the view that the ld. 1 st Appellate Authority failed to appreciate the controversy in right perspective. As per Coal Mines Provident Fund Scheme, ITA No. 44/KOL/2023 Assessment Year: 2017-2018 Rajmahal Coal Mining Limited 7 the payment was to be made upto the last day of every month. Earlier it was on 15 th day of the month. However, later on, it was changed to the last day of the month, the expression “on or before 3 (the last day) of every month”. The word ‘3 ’ is to represent the footnote at the end of the provision of the Scheme. The ld. CIT(Appeals) construed it as 3 rd day of the month. All these aspects have been explained by the assessee in its written submission elaborately. After examining the facts in the light of the above Scheme, we find that there is no delay in depositing the employees’ contribution to the Provident Fund Account as per the Scheme of Coal Mines and, therefore, no disallowance is to be made. The appeal of the assessee is allowed and disallowance of Rs.40,81,018/- is deleted. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 16 th March, 2023. Sd/- Sd/- (Girish Agrawal) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 16 th day of March, 2023 Copies to :(1) Rajmahal Coal Mining Limited, Industry House, 18 th Floor, 10, Camac Street, Kolkata-700017 (2) Assistant Commissioner of Income Tax, Circle-7(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 ITA No. 44/KOL/2023 Assessment Year: 2017-2018 Rajmahal Coal Mining Limited 8 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) Commissioner of Income Tax- , Kolkata; (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.