ACIT, Kota V. INSTRUMENTATION LIMITED, Kota

ITA 456/JPR/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2029 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 01-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43B; 154

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA- @ ITA NO. 456/JP/2017 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2010-11 ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE-1, KOTA CUKE VS. M/S INSTRUMENTATION LIMITED, JHALAWAR ROAD, KOTA LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAACL4212G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RES PONDENT VK;DJ VIHY LA- @ ITA NO. 457/JP/2017 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2011-12 ACIT CIRCLE-1 KOTA CUKE VS. INSTRUMENTATION LIMITED JHALAWAR ROAD, KOTA LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAACL4212G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESP ONDENT JKTLO DH VKSJ LS @ REVENUE BY : SMT NEENA JEPH (JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI P.C. PARWAL (C.A.) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 21/09/2017 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 25/09/2017 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THESE ARE TWO APPEALS FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT (A), KOTA DATED 07.03.2017 FOR A.Y. 2010-11 AND ORDER DATED ITA NO. 456 & 457/JP/2017 ACIT, KOTA VS. INSTRUMENTATION LIMITED,KOTA 2 06.03.2017 FOR A.Y 2011-12 WHEREIN THE RESPECTIVE G ROUNDS OF THE APPEAL ARE AS UNDER:- ITA NO. 456/JP/17 (GROUND OF REVENUES APPEAL):- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN:- (I) DELETING THE DISALLOWANCE OF CLAIM FOR DEDUCTION OF PF OF RS. 98,18,748/- FOR 2008-09 CLAIMED DURING THE YEAR UND ER CONSIDERATION MADE BY THE AO U/S 154 OF THE ACT; ITA NO. 457/JP/17 (GROUND OF REVENUES APPEAL):- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN:- (I) DELETING THE ADDITION OF RS. 2,40,76,803/- MADE BY DISALLOWING CONTRIBUTION TO PROVIDENT FUND U/S 36(1 )(VA) OF THE ACT. 2. IN ITS APPEAL FOR 2010-11, THE REVENUE HAS CHALL ENGED THE ACTION OF THE LD CIT(A) IN DELETING THE DISALLOWANCE OF CL AIM OF DEDUCTION OF P.F OF RS. 98,18,748/- FOR A.Y 2008-09 CLAIMED BY THE A SSESSEE DURING THE YEAR BY PASSING AN ORDER U/S 154 OF THE ACT. 3. THE LD. AR SUBMITTED THAT THE COMPANY HAS A PRAC TICE TO CLAIM DEDUCTION TOWARDS EMPLOYEES & COMPANYS P.F CONTRIB UTION PAID DURING THE PREVIOUS YEAR & THE REMAINING BALANCE IS CLAIME D IN THE YEAR OF ACTUAL PAYMENT IN SUBSEQUENT YEAR. ACCORDINGLY, DED UCTION OF RS. 98,18,748/- WAS CORRECTLY CLAIMED U/S 43B OF THE I. T. ACT, 1961 IN THE YEAR UNDER APPEAL TOWARDS PF COS & EMPLOYEES CONTR IBUTION OF 2008- 09 PAID DURING THE PREVIOUS YEAR RELEVANT TO ASSESS MENT YEAR 2010-11. ITA NO. 456 & 457/JP/2017 ACIT, KOTA VS. INSTRUMENTATION LIMITED,KOTA 3 4. ON PERUSAL OF THE ORDER OF THE LD. CIT(A), IT IS NOTED THAT THE LD CIT(A) HAS HELD THAT THE ISSUE WAS DEBATABLE AND AL SO WHEN THE MATTER HAD ALREADY BEEN CONSIDERED IN DETAIL IN SCRUTINY P ROCEEDINGS, THE AO WAS NOT CORRECT IN MAKING THE DISALLOWANCE U/S 154 OF THE ACT AND THE ACTION OF THE AO U/S 154 WAS HELD TO BE NOT VALID. THE REVENUE HAS NOT CHALLENGED THE SAID FINDING OF THE LD. CIT(A). FUR THER, ON MERITS, THE LD. CIT(A) HAS RELIED ON THE DECISION OF HONBLE RAJAST HAN HIGH COURT IN CASE OF CIT VS. STATE BANK OF BIKANER & JAIPUR REPO RTED IN 256 CTR 471 AND HAD DELETED THE ADDITIONS AGAINST WHICH THE REV ENUE IS PRESENTLY IN APPEAL BEFORE US. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD, FIRSTLY, THE ACTION OF THE AO INVOKING P ROVISIONS OF SECTION 154 HAVE BEEN HELD NOT VALID BY THE LD CIT(A) AGAIN ST WHICH THE REVENUE IS NOT IN APPEAL. ON THIS GROUND ITSELF, T HE SUBJECT APPEAL DESERVE TO BE REJECTED. FURTHER, ON MERITS, IT IS NOTED THAT PROVIDENT CONTRIBUTION RELATES TO THE ASSESSMENT YEAR 2008-09 AND AS PER THE PRACTICE FOLLOWED BY THE ASSESSEE, IT IS CLAIMED IN THE YEAR OF PAYMENT WHICH IS IN COMPLIANCE WITH THE PROVISIONS OF SECTI ON 43B OF THE ACT. ACCORDINGLY, THE ASSESSEE HAS CLAIMED THE SAID AMOU NT OF RS. 98,18,748/- WHICH PERTAINS AY 2008-09 AS THE SAME W AS PAID DURING YEAR AND CLAIMED U/S 43B OF THE ACT IN THE YEAR UND ER CONSIDERATION. WE ACCORDINGLY DO NOT SEE ANY INFIRMITY IN THE STAND O F THE ASSESSEE FOR CLAIMING PF CONTRIBUTIONS ON ACTUAL PAYMENT BASIS U /S 43B OF THE ACT. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ITA NO. 456 & 457/JP/2017 ACIT, KOTA VS. INSTRUMENTATION LIMITED,KOTA 4 6. IN ITS APPEAL FOR AY 2011-12, THE REVENUE HAS CH ALLENGED THE DELETION OF ADDITION OF RS. 2,40,76,803/- TOWARDS C ONTRIBUTION TO PROVIDENT FUND U/S 36(1)(VA) OF THE ACT. 7. BRIEFLY THE FACTS OF THE CASE ARE THAT OUT OF TO TAL EMPLOYEES CONTRIBUTION TOWARDS PROVIDENT FUND OF RS 23,16,27, 691/-, THE ASSESSEE HAS PAID RS 5,56,75,238/- DURING THE FINANCIAL YEAR . AS PER THE ASSESSING OFFICER, OUT OF THE AMOUNT SO PAID DURING THE FINANCIAL YEAR, RS. 3,15,98,435/- WAS PAID WITHIN PRESCRIBED DUE TI ME AND THE BALANCE AMOUNT OF RS. 2,40,76,803/- WAS PAID AFTER THE PRES CRIBED DUE TIME. ACCORDINGLY, HE DISALLOWED AND MADE AN ADDITION OF RS. 2,40,76,803/- U/S 36(1)(VA) READ WITH SECTION 43B OF THE ACT. 8. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A) WHO HAS DELETED THE DISALLOWANCE FOLLOWI NG DECISION OF HONBLE RAJASTHAN HIGH COURT IN CASE OF CIT VS. STA TE BANK OF BIKANER & JAIPUR REPORTED IN 256 CTR 471. NOW THE REVENUE IS IN APPEAL BEFORE US. 9. THE LD. AR SUBMITTED THAT THE MATTER IS SQUARELY COVERED BY THE DECISION OF THE CO-ORDINATE BENCH IN ASSESSEES OWN CASE IN ITA NO. 431/JP/2015 FOR AY 2010-11 WHEREIN CO-ORDINATE BENC H HAS FOLLOWED ITA NO. 456 & 457/JP/2017 ACIT, KOTA VS. INSTRUMENTATION LIMITED,KOTA 5 THE DECISION OF HONBLE RAJASTHAN HIGH COURT IN CAS E OF CIT VS. STATE BANK OF BIKANER & JAIPUR [256 CTR (RAJ.) 471] WHICH HAS BEEN RELIED UPON BY THE LD. CIT(A) WHILE GRANTING THE NECESSARI LY RELIEF TO THE ASSESSEE. IT WAS FURTHER SUBMITTED THAT IN EXACTLY IDENTICAL FACTS WHETHER THE MATTER HAS BEEN DECIDED BY THE HONBLE RAJASTHAN HIGH COURT IN PR. CIT VS RAJASTHAN STATE BEVERAGES CORPO RATION LTD., REPORTED IN [2017] 84 TAXMANN.COM 173(RAJ.), SLP FI LED BY THE REVENUE HAS RECENTLY BEEN DISMISSED BY THE HONBLE SUPREME COURT REPORTED IN 84 TAXMANN.COM 185 (SC). 10. THE LD. DR SUPPORTED THE ORDER OF ASSESSING OFF ICER. AT THE SAME TIME, SHE FAIRLY SUBMITTED THAT THE MATTER IS COVER ED IN FAVOUR OF THE ASSESSEE IN LIGHT OF THE DECISIONS OF THE HONBLE R AJASTHAN HIGH COURT. 11. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD, WE NOTE THAT THE AMOUNT OF RS 2,40,76,80 3 HAS BEEN PAID DURING THE FINANCIAL YEAR ITSELF EVEN THOUGH BEYOND THE PRESCRIBED DUE DATE. RESPECTFULLY FOLLOWING THE DECISION OF THE HO NBLE RAJASTHAN HIGH COURT IN DECISIONS REFERRED SUPRA, WE HEREBY DIRECT THE DELETION OF ADDITION OF RS. 2,40,76,803/- TOWARDS THE EMPLOYEE S CONTRIBUTION TO PF. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 25/09/2017. SD/- SD/- DQY HKKJR FOE FLAG ;KNO (KUL BHARAT) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER ITA NO. 456 & 457/JP/2017 ACIT, KOTA VS. INSTRUMENTATION LIMITED,KOTA 6 TK;IQJ@ JAIPUR FNUKAD@ DATED:- 25/09/2017. * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- ACIT, CIRCLE-1, KOTA 2. IZR;FKHZ@ THE RESPONDENT- INSTRUMENTATION LIMITED, KOTA 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. 456 & 457/JP/2017} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR