M/s DCIT, New Delhi V. M/s. Planman HR Pvt. Ltd., New Delhi

ITA 5028/DEL/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6875 (ITAT-DELHI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 23-01-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 23-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AGAINST DATED A Y PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI S. V. MEHROTRA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 5028/DEL/ 2016 (ASSESSMENT YEAR (2 013-14) DCIT CIRCLE 20(1) NEW DELHI (APPELLANT) VS PLANMAN HR PVT. LTD. 48, COMMUNITY CENTER, NARAINA INDUSTRIAL AREA, PHASE-I, NEW DELHI 110028 AAFCP0981K (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 12/07/2016 FOR A.Y. 2013-14 PASSED BY CIT(A)-7, NEW DELHI. 2. THE GROUND OF APPEAL IS AS UNDER: 1. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITIO N OF RS. 7,91,59,691/- MADE BY THE AO WITHOUT APPRECIATING T HE FACT THAT THE ASSESSEE COMPANY DID NOT COMPLY WITH THE P ROVISIONS OF SECTION 2(24)(X) AND 36(1)(VA) OF THE INCOME TAX ACT, 1961 ON ACCOUNT OF PAYMENTS TO BE MADE ON OR BEFORE THE DUE DATE AS APPELLANT BY SH. DEEPAK GARG, SR. DR RESPONDENT BY SH. VED JAIN & MRS. RANO JAIN, ADV. DATE OF HEARING 23.01.2017 DATE OF PRONOUNCEMENT 23.01.2017 PRESCRIBED UNDER THE LAW OF SUCH FUNDS ON ACCOUNT O F EMPLOYEES CONTRIBUTION TOWARDS PROVIDENT FUND OR ANY OTHER FU ND MENTIONED U/S 2(24)(X). 3. THE ASSESSEE COMPANY FILED ITS RETURN OF INCOME ON 01.10.2013 FOR A.Y. 2013-14 DECLARING LOSS OF RS. 3 5,41,809/-. THE CASE WAS SELECTED FOR SCRUTINY AND A NOTICE U/S. 14 3(2) WAS ISSUED. THE ASSESSING OFFICER MADE AN ADDITION OF RS. 7,91, 59,691/- ON ACCOUNT OF LATE DEPOSIT OF PF, ESIC AND PROFESSIONA L TAX. 4. THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DELETED THE ADDITION BY HOLDING THAT THE ASSESSEE PAID THE EMPLOYEES CONTRIBUTION TO PROVIDENT FUND, ESIC AND PROFESSION AL TAX BEFORE THE DUE DATE OF FURNISHING THE RETURN U/S. 139(1) OF TH E INCOME TAX ACT, 1961. THE CIT(A) HELD THAT IN VIEW OF THE LEGAL POS ITION IN CASE OF CIT VS. M/S. VINAY CEMENT LTD. 213 ITR 268 DECIDED BY THE HONBLE SUPREME COURT AND IN CASE OF CIT VS. AIMIL LTD. (20 10) 321 ITR 508 DECIDED BY THE HONBLE DELHI HIGH COURT, THE AS SESSING OFFICER WAS NOT JUSTIFIED IN MAKING THE DISALLOWANCE AND DE LETED THE SAME. 5. THE LD. DR SUBMITTED THAT THE ASSESSING OFFICER HAS RIGHTLY MADE AN ADDITION OF RS. 7,91,59,691/- ON ACCOUNT OF LATE DEPOSIT OF PF, ESIC AND PROFESSIONAL TAX. THE LD. DR FURTHER SUBMITTED THAT THE CASE IS NOT COVERED BY THE HONBLE DELHI HIGH C OURT JUDGMENT IN CASE OF CIT VS. AIMIL LTD. BUT THE LD. DR FAILED TO DISTINGUISH THE FACTS AS REGARDS TO THE PRESENT ASSESSEE TO THE SAID CASE. 6. THE LD. AR SUBMITTED THAT THE CASE IS SQUARELY C OVERED BY THE HONBLE DELHI HIGH COURT JUDGMENT IN CASE OF CIT VS . AIMIL LTD. IN FACT IN THIS MATTER ALSO THE ASSESSEE MADE PAYMENTS OF THE PF AND ESIC BEFORE THE RETURN WAS FILED. THE SAID FINDING IS GIVEN BY THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES. WE HAVE PERUSED THE JUDGMENT IN CASE OF CIT VS. AIMIL LTD. THE CIT(A) H AS CORRECTLY APPLIED THE RATIO LAID DOWN BY THE HONBLE DELHI HI GH COURT AND ALSO THAT OF APEX COURT IN CASE OF CIT VS. M/S. VIN AY CEMENT LTD. 213 ITR 268. THE ASSESSING OFFICER HAS NOT AT ALL D ISTINGUISHED THE FACTS OF THE ASSESSEE AND THE FACTS MENTIONED IN TH ESE TWO JUDGMENTS. THERE IS CLEAR FINDING BY THE CIT(A) THA T THE ASSESSEE PAID THE EMPLOYEES CONTRIBUTION TO PROVIDENT FUND, ESIC AND PROFESSIONAL TAX BEFORE THE DUE DATE OF FURNISHING THE RETURN U/S. 139(1) OF THE INCOME TAX ACT, 1961. THUS, THERE IS NO NEED TO INTERFERE WITH THE ORDER OF THE CIT(A). THE APPEAL OF THE REVENUE IS DISMISSED. 8. IN RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 23/01/2017. SD/- SD/- (S.V. MEHROTRA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 23/01/2017 *R. NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 23.01.2017 PS 2. DRAFT PLACED BEFORE AUTHOR 23.01.2017 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .01.2017 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. .01.2017 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS .01.2017 PS/PS 6. KEPT FOR PRONOUNCEMENT ON .01.2017 PS 7. FILE SENT TO THE BENCH CLERK . 01.2017 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.