M/S UJALA PUMPS PVT. LTD., Alwar V. ASSISTANT COMMISSIONER OF INCOME TAX, Alwar

ITA 448/JPR/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0080 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 04-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RUNI PAL JCIT DHK
• Keywords: Corroborative evidences; Capital receipt; Condonation of delay
• Section: 139(1)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH B, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,O A JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 448/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEARS : 2013-14. M/S. UJALA PUMPS PVT. LTD., E-372, RIICO INDUSTRIAL AREA, ROAD NO. 24, BHIWADI, ALWAR. CUKE VS. THE ACIT, CIRCLE-2, ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AAACU 2262 M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE (NOTICE RETURNED) JKTLO DH VKSJ LS@ REVENUE BY : SMT. RUNI PAL (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 25/11/2019. ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 26 /11/2019. VKNS'K@ ORDER PER VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 27 TH NOVEMBER, 2017 OF LD. CIT (A) FOR THE ASSESSMENT YE AR 2013-14. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE DESPITE THE REPE ATED NOTICES ISSUED TO THE ASSESSEE THROUGH RPAD. ON THE LAST DATE OF HEARING I.E. 06.08.2019 THE LD. A/R OF THE ASSESSEE HAS WITHDRAWN HIS POWER OF ATTORNEY DU E TO LACK OF PROPER INSTRUCTIONS AND INFORMATION FROM THE ASSESSEE. A FRESH NOTICE WAS ISSUED TO THE ASSESSEE THROUGH RPAD WHICH HAS BEEN RECEIVED BACK UNSERVED WITH THE POSTAL REMARKS THAT 2 ITA NO. 448/JP/2018 M/S. UJALA PUMPS PVT. LTD., BHIWADI, ALWAR. OFFICE OF THE ASSESSEE IS CLOSED. ACCORDINGLY, IN THESE CIRCUMSTANCES, WE PROPOSE TO HEAR AND DISPOSE OFF THE APPEAL OF THE ASSESSEE EX PARTE. 2. THERE IS A DELAY OF 56 DAYS IN FILING THE PRESEN T APPEAL. THE ASSESSEE HAS FILED AN APPLICATION FOR CONDONATION OF DELAY WHICH IS ALSO SUPPORTED BY AN AFFIDAVIT OF THE DIRECTOR OF THE ASSESSEE COMPANY. WE HAVE C AREFULLY PERUSED THE CAUSE OF DELAY EXPLAINED IN THE APPLICATION FOR CONDONATION OF DELAY AS WELL AS THE AVERMENTS MADE IN THE AFFIDAVIT. THE ARGUMENT OF THE LD. D/R IS ALSO CONSIDERED ON THE POINT OF CONDONATION OF DELAY. THE ASSESSEE HAS EXPLAINED T HE CAUSE OF DELAY THAT FOR LAST THREE YEARS THE ASSESSEE IS PASSING THROUGH A GREAT FINANCIAL STRESS AND CONSEQUENTLY MOST OF ITS EMPLOYEES WORKING IN FINAN CE AND ACCOUNTS DEPARTMENTS HAVE LEFT THE JOB OF THE ASSESSEE AND IN THOSE CIRC UMSTANCES THE ASSESSEE COULD NOT TAKE THE STEPS IN TIME TO FILE THE APPEAL. HAVING CONSIDERED THE CAUSE OF DELAY EXPLAINED BY THE ASSESSEE AND TAKING A LENIENT VIEW , WE CONDONE THE DELAY OF 56 DAYS IN FILING THE PRESENT APPEAL. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) HAS ERRED IN, CONFIRMING THE ACTION OF LD. AO, IN TAXING THE AMOUNT OF RS. 24,56,196/- RECEIVED AS PART OF C APITAL SUBSIDY ON ACCOUNT OF RIPS, 2016.THE ACTION OF LD. CIT (A) IS ILLEGAL, UNJUSTIFIED, ARBITRARY AND AGAINST THE FAC TS OF THE CASE. RELIEF MAY PLEASE BE GRANTED BY DELETING THE SAID A DDITION OF RS. 24,56,196/-. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT (A) HAS ERRED IN CONFIRMING THE ACTION OF THE L D. AO IN MAKING ADDITION OF RS. 6,51,297/- ON ACCOUNT OF DEL AY IN DEPOSITION OF EMPLOYEES CONTRIBUTION OF PF AND ESI UNDER SECTION 36(1)(VA) R.W.S. 2(24)(X) OF INCOME TAX ACT , 1961. THE ACTION OF LD. CIT (A) IS ILLEGAL, UNJUSTIFIED, ARBI TRARY AND AGAINST THE FACTS OF THE CASE. RELIEF MAY PLEASE BE GRANTED BY DELETING THE SAID ADDITION OF RS. 6,51,297/-. 3 ITA NO. 448/JP/2018 M/S. UJALA PUMPS PVT. LTD., BHIWADI, ALWAR. 3. THE ASSESSEE COMPANY CRAVES ITS RIGHT TO ADD, AM END OR ALTER ANY OF THE GROUNDS ON OR BEFORE THE HEARING. GROUND NO. 1 IS REGARDING AN ADDITION ON ACCOUNT SU BSIDY RECEIVED BY THE ASSESSEE. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO NOTED THAT THERE IS A DIFFERENCE OF RS. 24,56,196/- IN THE TOTAL INCOME A S PER PROFIT & LOSS ACCOUNT AND THE TOTAL INCOME DECLARED IN THE RETURN OF INCOME. THE ASSESSEE EXPLAINED THAT DURING THE YEAR THE ASSESSEE RECEIVED SUBSIDY (RIPS ) OF RS. 24,56,196/- WHICH WAS TAKEN INTO ACCOUNT FOR TAXATION PURPOSES BUT NOT DE CLARED IN THE RETURN OF INCOME. THE AO ACCORDINGLY MADE THE ADDITION OF THE SAID AM OUNT FOR WANT OF ANY EXPLANATION ON BEHALF OF THE ASSESSEE. THE SAID AD DITION WAS CONFIRMED BY THE LD. CIT (A) IN PARA 5.3 AS UNDER :- 5.3. I HAVE CONSIDERED THE ORDER PASSED BY THE AO AND SUBMISSIONS FILED BY THE APPELLANT. POINT WISE ADJU DICATION IS MADE AS UNDER : 1. GROUND OF APPEAL NO. 1(A) IS DIRECTED AGAINST THE R EJECTION OF CLAIM OF CAPITAL RECEIPT OF RS. 24,56,196/- ON ACCO UNT OF RIPS, 2016. SINCE NO SUBMISSION ON THE ISSUE IS FIL ED ON THIS GROUND OF APPEAL, THEREFORE I RELY UPON THE ASSESSM ENT ORDER AND THE ADDITION OF RS. 24,56,196/- IS SUSTAI NED AND THE GROUND OF APPEAL ON THIS ISSUE IS DISMISSED. THUS THE LD. CIT (A) HAS CONFIRMED THE ADDITION WHE N NO SUBMISSION, EXPLANATION OR ANY EVIDENCE WAS PRODUCED BY THE ASSESSEE IN SUPPOR T OF THE CLAIM. EVEN BEFORE THE 4 ITA NO. 448/JP/2018 M/S. UJALA PUMPS PVT. LTD., BHIWADI, ALWAR. TRIBUNAL, THE ASSESSEE HAS NOT PRODUCED ANY SUPPORT ING EVIDENCE TO SHOW THAT THE SUBSIDY WAS RECEIVED ON CAPITAL FIELD AND NOT REVEN UE RECEIPT. ACCORDINGLY, IN THE ABSENCE OF ANY EXPLANATION AND DOCUMENTARY EVIDENCE , WE DO NOT FIND ANY ERROR OR ILLEGALITY IN THE ORDERS OF THE AUTHORITIES BELOW Q UA THIS ISSUE. GROUND NO. 2 IS REGARDING DISALLOWANCE MADE BY THE AO ON ACCOUNT OF DELAY IN PAYMENT OF EMPLOYEES CONTRIBUTION OF PF AND ESI. 4. WE HAVE HEARD THE LD. D/R AND CAREFULLY PERUSED THE IMPUGNED ORDERS. WE FIND THAT THE LD. CIT (A) HAS ACCEPTED THE FACT THA T THE ASSESSEE DEPOSITED THE AMOUNT OF CONTRIBUTION TO PF AND ESI BEFORE THE DUE DATE OF FILING OF THE RETURN OF INCOME. THE RELEVANT PART OF THE ORDER OF THE LD. CIT (A) IS AS UNDER :- 2. GROUND OF APPEAL NO. 1(B) IS DIRECTED AGAINST ADDITION OF RS. 6,51,297/-. I HAVE TAKEN INTO CONSIDERATION THE SUB MISSION MADE BY THE APPELLANT THAT THE AMOUNT COLLECTED AS CONTRIBU TION TOWARDS PF AND ESI WAS DEPOSITED AFTER THE DUE DATE BUT BEFORE THE DUE DATE OF FILING THE RETURN. HOWEVER, NO SUPPORTING EVIDENCE OF THE SAME WAS FILED BY THE APPELLANT. THEREFORE, THE CLAIM OF THE APPELLAN T REMAINS UNSUBSTANTIATED. ACCORDINGLY, THE GROUND OF APPEAL OF THE APPELLANT IS DISMISSED FOR LACK OF EVIDENCES. ONCE THE DEPOSIT OF THE AMOUNT BEFORE THE DUE DATE OF FILING OF THE RETURN IS NOT IN DISPUTE, THEN IN VIEW OF THE VARIOUS BINDING DECISI ONS ON THIS ISSUE INCLUDING THE JUDGMENTS OF THE HONBLE JURISDICTIONAL HIGH COURT IN CASE OF CIT VS. STATE BANK OF BIKANER & JAIPUR, 363 ITR 70 (RAJ.HC), CIT VS. JAIP UR VIDHYUT VITRAN NIGAM LTD. 99 DTR 131 (RAJ.HC) AND CIT VS. UDAIPUR DUGDH UTPADAK SAHAKARI SANGH LTD., 366 ITR 163 (RAJ.HC), NO ADDITION/DISALLOWANCE IS CALLED FO R WHEN THE ASSESSEE MADE THE 5 ITA NO. 448/JP/2018 M/S. UJALA PUMPS PVT. LTD., BHIWADI, ALWAR. PAYMENT TOWARDS THE EMPLOYEES CONTRIBUTION TO PF AN D ESI BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME UNDER SECTION 139(1) OF THE ACT. HENCE THE ADDITION MADE BY THE AO ON THIS ACCOUNT IS DELETED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26/11/2019 . SD/- SD/- FOE FLAG ;KNO FOT; IKY JKWO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 26/11/2019. DAS/ VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT-M/S. UJALA PUMPS P. LTD., BHIWADI,ALW AR. 2. IZR;FKHZ@ THE RESPONDENT-THE ACIT, CIRCLE-2, ALWAR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 448/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR