DCIT, Bangalore V. M/s Avasarala Technologies Ltd., Bangalore

ITA 523/BANG/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90057 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 30-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P K SRIHARI
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER A ND SHRI JASON P BOAZ, ACCOUNTANT MEMBER I TA NO. 52 3 / BANG/20 15 (ASSESSMENT YEAR: 2011 - 12 ) DEPUTY COMMISSIONER OF INCOME - TAX, CIRCLE 1(1)(1) , BANGALORE. APPELLANT VS. M/S.AVASARALA TECHNOLOGIES LTD., 47, 36 TH MAIN ROAD, BTM 1 ST STAGE, DOLLAR SCHEME, BANGALORE - 560068. RESPONDENT PAN: AABCA 2381 E APPELLANT BY: DR. P.K.SRIHARI, ADDL. CIT(DR). RESPONDENT BY: NONE. DATE OF HEARING : 2 8 /07/2015 DATE OF PRONOUNCEMENT: 30 /07/2015 O R D E R PER JASON P. BOAZ, AM: IN THIS APPEAL, THE REVENUE IS AGGRIEVED BY THE ORDER OF THE ORDER OF THE CIT(A) I, BANGALORE, DATED 2 0 /01/2015 IN ALLOWING THE CLAIM OF THE A SSESSEE U/S 36(1)(VA) OF THE INCOME - TAX ACT, 1961 [ ACT'] BY FOLLOWING THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF ESSAE TERAOKA PVT. LTD., WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAS NOT REMITTED THE EMPLOYEES CONTRIBUTION TOWAR DS PROVIDENT FUND AND ESI WITHIN THE DUE DATE I TA NO . 52 3 /BANG/20 1 5 M/S. AVARASARALA TECHNOLOGIES LTD. PAGE 2 OF 3 SPECIFIED UNDER THE ACT AND AS SUCH, THESE SUMS ARE INCOME IN THE HANDS OF THE ASSESSEE IN TERMS OF SECTION 2(24)(X) READ WITH SECTION 36(1)(VA) OF THE ACT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E - COMPANY FILED ITS RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3), THE ASSESSING OFFICER (AO) OBSERVED THAT THE ASSESSEE HAS REMITTED THE EMPLOYEES CONTRIBUTION TO PF AND ESI AFTER THE DUE DATE FOR SUCH R EMITTANCES. AO, THEREFORE, DISALLOWED THE SAME AND BROUGHT IT TO TAX. 3. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) WHO FOLLOWED THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF ESSAE TERAOKA PVT. LTD., IN ITA NO.480 O F 2013 DATED 14/02/2014 REPORTED IN 43 TAXMAN.COM 33 (KAR.) WHEREIN IT WAS HELD THAT EVEN IN RESPECT OF EMPLOYEES CONTRIBUTION TO PF AND ESI, DEPOSITED BEYOND THE DUE DATE UNDER RESPECTIVE ACT S BUT PAID BEFORE THE DUE DATE OF FILING OF RETURN U/S 139(1), THE SAME IS E LIGIBLE FOR DEDUCTION U/S 43B OF THE ACT. AGAINST THE RELIEF GIVEN BY THE CIT(A), REVENUE IS IN APPEAL BEFORE US. 4. T HE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE AO . NONE WAS PRESENT ON BEHALF OF THE RESPONDENT - AS SESSEE. W E FIND THAT THE ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF ESSAE TERAOKA PVT. LTD . (CITED SUPRA) AS WELL AS IN THE I TA NO . 52 3 /BANG/20 1 5 M/S. AVARASARALA TECHNOLOGIES LTD. PAGE 3 OF 3 CASE OF SABARI ENTERPRISES (298 ITR 141) (KAR). WE, THEREFORE, DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). 5. IN THE RESULT, THE REVENUE S APPEAL IS DISMISSED. PRON OUNCED IN THE OPEN COURT ON 30 TH JULY , 201 5 . S D/ - S D/ - (SMT. P.MADHAVI DEVI) (JASON P B OAZ) JUDICIAL MEMBER ACCOUNTANT MEMBER EKSRINIVASULU C OPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX AP PELLATE T RIBUNAL BANGALORE