Anil Agarwal, New Delhi V. ACIT, Muzaffarnagar

ITA 4915/DEL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7460 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 08-08-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 08-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANIL K JAIN
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.4915/DEL/2014 ASSESSMENT YEAR : 2010-11 ANIL AGARWAL, C/O S.P. JAIN & ASSOCIATES, F-83(GF), GREEN PARK (MAIN), NEW DELHI. PAN: ACFPA3783K VS. ACIT, CIRCLE-II, MUZAFFARNAGAR. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ANIL K. JAIN, ADVOCATE DEPARTMENT BY : SHRI ANIL KUMAR SHARMA, SR. DR DATE OF HEARING : 08.08.2016 DATE OF PRONOUNCEMENT : 08.08.2016 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER PASSED BY THE CIT(A) ON 25.06.2014 IN RELATION TO T HE ASSESSMENT YEAR 2010-11. ITA NO.4915/DEL/2014 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAIN ST THE CONFIRMATION OF ADDITION OF RS.4,36,613/- MADE BY THE AO ON ACCOUNT OF LATE PAYMENT OF EPF AND ESIC. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE AO MADE DISALLOWANCE OF RS.4,36,613/- ON ACCOUNT OF LATE DE POSIT OF EMPLOYEES CONTRIBUTION TOWARDS EPF AND ESIC. THE ASSESSEE CO NTENTED THAT THE DEPOSITS WERE MADE LATE UNDER THE RESPECTIVE ACTS, BUT WERE, IN FACT, MADE BEFORE THE DUE DATE OF FILING THE RETURN OF IN COME U/S 139(1) OF THE ACT. THE AO WAS NOT CONVINCED, WHO MADE THE DISALLO WANCE. THE LD. CIT(A) TOO UPHELD THE DISALLOWANCE. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. I FIND THAT THE ISSUE RAISED I N THE INSTANT APPEAL IS NO MORE RES INTEGRA. THE HONBLE SUPREME COURT IN THE CASE OF CIT V. ALOM EXTRUSIONS LIMITED [(2009) 319 ITR 306 (SC)] HAS HELD THAT THE AMENDMENT TO FIRST PROVISO AND OMISSION OF THE SECO ND PROVISO TO SECTION 43B BY THE FINANCE ACT, 2003 IS RETROSPECTI VE. THE HONBLE ITA NO.4915/DEL/2014 3 DELHI HIGH COURT IN THE CASE OF CIT V. AIMIL LIMITED [(2010) 321 ITR 508 (DELHI)] HAS ALLOWED DEDUCTION IN RESPECT OF EMPLOYEES SHAR E WHEN THE AMOUNT WAS PAID BEFORE THE DUE DATE. WHEN WE CO NSIDER THESE TWO JUDGMENTS, IT BECOMES PATENT THAT BOTH THE EMPLOYE RS AND EMPLOYEES CONTRIBUTION ARE ALLOWABLE AS DEDUCTION IF THE AMOU NT OF PROVIDENT FUND ETC., THOUGH BELATEDLY, BUT IS PAID BEFORE THE DUE DATE OF FILING OF RETURN U/S 139(1) OF THE ACT. ADVERTING TO THE FACTS OF T HE INSTANT CASE, IT IS SEEN AS AN ADMITTED POSITION THAT THE ASSESSEE DEPOSITED THE EMPLOYEES CONTRIBUTION TOWARDS EPF AND ESIC BEFORE THE DUE DA TE U/S 139(1) OF THE ACT. RESPECTFULLY FOLLOWING THE AFORENOTED JUDGMEN T OF THE HONBLE JURISDICTIONAL HIGH COURT, I ORDER FOR THE DELETION OF THE ADDITION. 5. IN THE RESULT, THE APPEAL IS ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 08.08.2 016. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 08 TH AUGUST, 2016. DK ITA NO.4915/DEL/2014 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.