ACIT, Faridabad V. M/s. Chokus Securities Pvt. Ltd, Faridabad

ITA 4770/DEL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8152 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-02-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 17-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA
• Assessee Lawyers: T R AGGARWAL
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B : NEW DELHI BEFORE SHRI RAJPAL YADAV, JM AND SHRI R.C.SHARMA, A M ITA NO.4770/DEL/2009 ASSESSMENT YEAR : 2006-07 ASSTT.COMMISSIONER OF INCOME TAX, CIRCLE-II, FARIDABAD. VS. M/S CHOKUS SECURITIES PVT.LTD., 3752, DR.RAJENDER PRASAD CHOWK, SECTOR-23, FARIDABAD. PAN NO.AABCC1804E. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANISH GUPTA, DR. RESPONDENT BY : SHRI T.R.AGGARWAL, ADVOCATE. ORDER PER R.C.SHARMA, AM : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 19.10.2009 FOR THE AY 2006-07, WHEREIN THE REVENUE HAS DISPUTED DELETION OF ADDITION OF RS.6,20,477/- MADE BY THE AO ON ACCOUNT OF LATE DEPOSIT OF EMPLOYEES CONTRIBUTION TOWARDS PF & ESI. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. IN THE COURSE OF ASSESSMENT, THE AO FOUND THAT PAYMENT OF PF & ESI W AS NOT WITHIN THE DUE DATES PRESCRIBED UNDER THE RESPECTIVE STATUTE, ACCORDINGL Y HE DECLINED THE DEDUCTION BY INVOKING SECTION 43B OF IT ACT. BY THE IMPUGNED OR DER, CIT(A) DELETED THE DISALLOWANCE BY OBSERVING THAT PAYMENT WAS NOT ONLY MADE BEFORE LAST DATE OF FILING RETURN BUT ALSO WITHIN THE GRACE PERIOD OF F IVE DAYS. 3. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND FOU ND FROM THE RECORD THAT IN VIEW OF THE DECISION OF HONBLE MADRAS HIGH COURT I N THE CASE OF SHRI GANPATI MILLS CO.LTD. 243 ITR 879, IF THE PAYMENT OF PF & ESI WAS MADE WITHIN THE GRACE PERIOD OF FIVE DAYS, NO DISALLOWANCE CAN BE M ADE U/S 43B. HON'BLE ITA-4770/DEL/2009 2 JURISDICTIONAL HIGH COURT IN THE CASE OF P.M.ELECTR ONICS 177 TAXMAN 1 HAD ALSO HELD THAT NO DISALLOWANCE U/S 43B CAN BE MADE IF TH E SAME IS PAID BEFORE LAST DATE OF FILING THE RETURN. HON'BLE SUPREME COURT IN THE CASE OF ALOME EXTRUSIONS HELD THAT AMENDMENT IN SECTION 43B BY THE FINANCE ACT, 2 003 WAS RETROSPECTIVE FROM 1.4.1988, ACCORDINGLY PF & ESI PAYMENT MADE BEFORE THE LAST DATE OF FILING THE RETURN CANNOT BE DISALLOWED. ACCORDINGLY, RESPECTF ULLY FOLLOWING THE DECISIONS REFERRED ABOVE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) IN DELETING THE DISALLOWANCE ON ACCOUNT OF DELAYED CONTRIBUTION OF PF AND ESI. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF HEARING ON 17 TH FEBRUARY, 2010. SD/- SD/- (RAJPAL YADAV) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 17.02.2010. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR ITA-4770/DEL/2009 3