The Deputy Commissioner Of Income Tax, Circle-1(1), Visakhapatnam V. Bharat Heavy Plate & Vessel Limitted, Visakhapatnam

ITA 457/VIZ/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9259 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 01-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Section: 143(3); 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ I .T.A.NO. 457 / VIZ/201 9 ( / A SSESSMENT Y EAR : 20 1 2 - 1 3 ) DY. COMMISSIONER OF INCOME TAX CIRCLE 1(1) VISAKHAPATNAM VS. M/S BHARAT HEAVY PLATE & VESSELS LTD. D.NO.10 - 3, ADMINISTRATIVE BUILDING NATAYYAPALEM VISAKHAPATNAM [PAN : AAACB7076N ] ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SMT.SUMAN MALIK, DR / RESPONDENT BY : NONE / DATE OF HEARING : 0 5 . 0 9 . 201 9 / DATE OF PRONOUNCEMENT : 30 .09. 201 9 / O R D E R P ER SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX ( APPEALS ) [CIT(A)] - 1 , VISAKHAPATNAM IN 2 I.T.A. NO . 457 /VIZ/201 9 , A.Y.20 1 2 - 1 3 M/S BHARAT HEAVY PLATE & VESSELS LTD., VISAKHAPATNAM ITA .NO.1 154 /201 4 - 1 5, VSP/2018 - 19 DATED 27 . 11 .201 8 FOR THE ASSESSMENT YEAR (A.Y.) 201 2 - 1 3 . 2. IN THIS CASE, THE ASSESSMENT WAS COMPLETED U/S 143(3) BY AN ORDER DATED 06.02.2015 AND I N THE ASSESSMENT, THE ASSESSING OFFICER (AO) MADE THE ADDITION OF RS.69,40,196/ - U/S 36(1)(VA) R.W.S.2(24)(X) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). THE ASSESSEE HAS COLLECTED THE CONTRIBUTIONS TOWARDS PROVIDENT FUND FROM THE EMPLOYEES, BUT NOT REM ITTED TO THE PROVIDENT FUND ACCOUNT BEFORE THE DUE DATE OF PAYMENT AS SPECIFIED UNDER THE PROVIDENT FUND ACT. HOWEVER, THE SAID CONTRIBUTIONS WERE REMITTED TO THE CONCERNED ACCOUNT BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME. HENCE, T HE AO MADE THE ADDITION U/S 2(24)(X) R.W.S.36(1)(VA) OF THE ACT. 3. AGAINST THE ORDER OF THE AO, THE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE FOLLOWING THE DECISION OF HONBLE KARNATAKA HIGH COURT IN THE CASE OF ES SAE TEROKA (P) LTD., VS.DCIT (2014) 366 ITR 408. THE LD.CIT(A) ALSO RELIED ON TH E FOLLOWING DECISIONS : (I) CIT VS. KICHHA SUGAR COMPANY LTD. (2013) 356 ITR 0351 (UTTARAKHAND) 3 I.T.A. NO . 457 /VIZ/201 9 , A.Y.20 1 2 - 1 3 M/S BHARAT HEAVY PLATE & VESSELS LTD., VISAKHAPATNAM (II) CIT VS. ALOM EXTRUSIONS LTD. (319 ITR 306) - 227 CTR (SC) 417 (2009) (III) S C IN CIT VS. VINAY CEMENT LTD. (2009) 313 ITR (ST.)1 (IV) CIT VS. VIJAY SHREE LTD. 43 TAXMAN 396 (CALCUTTA HC) (V) CIT VS. NEXUS COMPUTERS PVT. LTD. 313 ITR 144 4. AGAINST THE ORDER OF THE LD.CIT(A), THE DEPARTMENT HAS FILED APPEAL BEFORE THIS TRIBUNAL. 5 . WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. THIS TRIBUNAL HAS TAKEN A VIEW THAT DEDUCTION OF EMPLOYEES CONTRIBUTION REQUIRED TO BE ALLOWED IF THE SAME IS REMITTED TO THE EMPLOYEES PROVIDENT FUND ACCOUNT BEFORE THE DUE DAT E FOR FILING THE RETURN OF INCOME IN THE CASE OF M/S EASTERN POWER DISTRIBUTION COMPANY OF A.P. LTD IN I.T.A. NO.374/VIZ/2017 DATED 20.09.2017 AND ALSO IN THE CASE OF M/S MIRACLE SOFTWARE SYSTEMS (INDIA) PVT. LTD. VIDE I.T.A. NO.150/VIZ/2019 DATED 07.08. 2019, FOLLOWING THE DECISION OF HONBLE KARNATAKA HIGH COURT IN THE CASE OF ESSAE TEROKA (P) LTD. ( SUPRA ), FOR THE SAKE OF CLARITY AND CONVENIENCE, WE EXTRACT RELEVANT PART OF THE ORDER OF THE ITAT IN THE CASE OF M/S MIRACLE SOFTWARE SYSTEMS (INDIA) PVT. L TD. ( SUPRA ) WHICH READS AS UNDER : 4 I.T.A. NO . 457 /VIZ/201 9 , A.Y.20 1 2 - 1 3 M/S BHARAT HEAVY PLATE & VESSELS LTD., VISAKHAPATNAM 9. WE HAVE HEARD BOTH THE PARTIES AND FIND THAT THE ASSESSEE HAS REMITTED THE EMPLOYEES CONTRIBUTION TO P.F BEYOND THE DUE DATE SPECIFIED UNDER P.F ACT, BUT BEFORE THE DUE DATE FOR FILING THE RETURN OF INCOME. THIS TRI BUNAL HAS CONSISTENTLY TAKEN THE VIEW THAT THE DEDUCTION IS TO BE ALLOWED EVEN IN CASE OF EMPLOYEES CONTRIBUTION, IF THE SAME IS PAID BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME. THE TRIBUNAL HAS FOLLOWED THE DECISION OF HONBLE KARNATAKA HIGH COURT IN THE CASE OF ESSAE TERAOKA PVT LTD. VS. DCIT [366 ITR 408] AND THE DECISION OF ITAT, HYDERABAD IN THE CASE OF TETRA SOFT INDIA PVT. TD. VS. ACIT (2015) (40 ITR TRIBUNAL 470) WHILE DE LIVERING THE ABOVE RULING. FURTHER THIS TRIBUNAL ON IDENTICAL FACTS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE IN ITS ORDER IN I.T.A NO.485/VIZ/2018 DATED 25.01.2019. SINCE THE LD.CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE FOLLOWING THE ORDER OF THIS T RIBUNAL, WE FIND NO REASON TO INTERFERE WITH THE ORDER OF THE CIT(A), ACCORDINGLY THE REVENUES APPEAL IN GROUND NO.5 TO 8 ARE DISMISSED. 5.1. RESPECTFULLY FOLLOWING THE VIEW TAKEN BY THIS TRIBUNAL, WE UPHOLD THE ORDER OF THE LD.CIT(A) AND DISMISS THE APPEAL OF THE REVENUE. 6 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH SEPTEMBER 2019. S D/ - S D/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 30 .09.2019 L.RAMA, SPS 5 I.T.A. NO . 457 /VIZ/201 9 , A.Y.20 1 2 - 1 3 M/S BHARAT HEAVY PLATE & VESSELS LTD., VISAKHAPATNAM / COPY OF THE ORDER FORWARDED TO: - 1. / THE ASSESSEE M/S BHARAT HEAVY PLATE & VESSELS LTD., D.NO.10 - 3, ADMINISTRATIVE BUILDING, NATAYYAPALEM, VISAKHAPATNAM 2. / THE REVENUE - DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(1), VISAKHAPATNAM 3. THE PR. COMMISSIONER OF INCOME TAX - 1 , VISAKHAPATNAM 4. THE COMMISSIONER OF INCOME - TAX (APPEALS) - 1, VISAKHAPATNAM 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM