Assistant Commissioner of Income Tax Circle-7(1)(2), Bangalore V. M/s Value Point Systems Private Limited , Bangalore

ITA 449/BANG/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7523 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 23-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH JT
• Assessee Lawyers: B T SHETTY
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.449/BANG/2017 ASSESSMENT YEAR : 2013-14 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 7(1)(2), BANGALORE. VS. M/S. VALUE POINT SYSTEMS PVT LTD., NO.66, 4 TH CROSS, (OPP. ORACLE LEXINGTON), KAVERI LAYOUT, THAVAREKERE MAIN ROAD, BANGALORE 560 029. PAN: AACCV 4796R APPELLANT RESPONDENT APPELLANT BY : SHRI B.R. RAMESH, JT. CIT(DR) RESPONDENT BY : SHRI B.T. SHETTY, CA DATE OF HEARING : 19.09.2017 DATE OF PRONOUNCEMENT : 28.09.2017 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 L AW AND FACTS OF THE CASE. 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE THE CIT(A) IS JUSTIFIED IN LAW IN NOT CONSIDERING THE P ROVISIONS OF SECTION 36(1) OF THE I. T. ACT'? ITA NO.449/BANG/2017 PAGE 2 OF 4 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE THE CIT(A) IS JUSTIFIED IN LAW IN CONSIDERING THAT THE CONTRIBUTION OF PF REMITTED BY THE EMPLOYER AFTER DUE DATE PRESCRIB ED IS NOT IN CONTRAVENTION TO THE PROVISIONS OF SECTION 43B OF T HE I. T. ACT'? 4. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED A T THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT( A) IN SO FAR AS IT RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND TH AT OF THE ASSESSING OFFICER MAY BE RESTORED. 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANY OF THE GROUNDS MENTIONED ABOVE. 2. THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OU R ATTENTION THAT THE ASSESSEE HAS MADE THE PAYMENTS OF EMPLOYEE CONTRIBU TION TOWARDS PF DURING THE GRACE PERIOD AND EVEN BEFORE THE DUE DAT E OF FILING OF THE RETURN, BUT THE AO HAS DISALLOWED THE PAYMENTS AGAINST WHIC H AN APPEAL WAS FILED BEFORE THE CIT(APPEALS) WITH THE SUBMISSION THAT TH E PAYMENTS WERE MADE DURING THE GRACE PERIOD. THE CIT(APPEALS) RE-EXAMI NED THE ISSUE IN THE LIGHT OF JUDGMENT OF HON'BLE JURISDICTIONAL HIGH CO URT IN THE CASE OF M/S. ESSAE TEREOKA (P) LTD. V. DCIT, 366 ITR 408 (KAR) AND DELETED THE ADDITION OF RS.36,24,844. 3. AGGRIEVED, THE REVENUE HAS PREFERRED AN APPEAL B EFORE THE TRIBUNAL AND PLACED RELIANCE UPON THE ORDER OF THE AO; WHER EAS THE LD. COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT CONTRIBUTION TO PF WAS MADE ON 17.7.12 AND 17.9.12, 17.10.12 & 17.1.13. SINCE THE PAYMENT WAS MADE WITHIN THE GRACE PERIOD OF 5 DAYS, THE SAME WAS ALLOWED AS PER CIRCULAR AND ALSO THE JUDGMENT OF HON'BLE JURISDICTIONAL HIGH COURT. THE LD. COUNSEL FOR THE ITA NO.449/BANG/2017 PAGE 3 OF 4 ASSESSEE HAS FURTHER EXPLAINED THE DELAY FOR FEW DA YS ON ACCOUNT OF SATURDAY & SUNDAY. 4. HAVING CAREFULLY EXAMINED THE ORDERS OF LOWER AU THORITIES, WE FIND THAT THE PAYMENTS TOWARDS CONTRIBUTION TO PF WERE M ADE DURING THE GRACE PERIOD. NOW IT HAS BEEN REPEATEDLY HELD THAT EVEN IF THE PAYMENT IS MADE BEFORE THE DUE DATE FOR FILING OF THE RETURN, IT SH OULD BE ALLOWED. KEEPING IN VIEW THE LEGAL PROVISIONS, SINCE WE FIND THAT THE P AYMENTS TOWARDS CONTRIBUTION TO PF WERE MADE WELL BEFORE THE DUE DA TE FOR FILING OF THE RETURN, NO DISALLOWANCE CAN BE MADE. ACCORDINGLY, WE CONFIRM THE ORDER OF THE CIT(APPEALS). 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF SEPTEMBER, 2017. SD/- SD/- ( A.K. GARODIA ) ( SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 28 TH SEPTEMBER, 2017. / D ESAI S MURTHY / ITA NO.449/BANG/2017 PAGE 4 OF 4 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.