V.Dhana Reddy&Company Shipping Services, Visakhapatnam V. ITO, Ward-1(1), Visakhapatnam

ITA 527/VIZ/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6485 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 06-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K C DAS
• Section: 43B; 263

Judgement Text

ITA NO.527/VIZAG/2017 M/S. V. DHANA REDDY & COMPANY SHIPPING SERVICES, VS KP 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . # % , ' BEFORE SHRI D. MANMOHAN, VICE PRESIDENT & SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./I.T.A.NO.527/VIZAG/2017 ( / ASSESSMENT YEAR: 2014-15) M/S. V. DHANA REDDY & COMPANY SHIPPING SERVICES VISAKHAPATNAM ITO, WARD - 1(1), VISAKHAPATNAM [PAN NO. AAGFV1236P ] ( ) / APPELLANT) ( *+) / RESPONDENT) / APPELLANT BY : SHRI G.V.N. HARI, AR / RESPONDENT BY : SHRI K.C. DAS, DR / DATE OF HEARING : 08.12.2017 / DATE OF PRONOUNCEMENT : 08.12.2017 / O R D E R PER D. MANMOHAN, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER PASSED U/S 263 OF THE INCOME TAX ACT, 1961 (HEREINA FTER CALLED AS 'THE ACT'), WHEREIN THE LD. COMMISSIONER WAS OF THE OPIN ION THAT THE EMPLOYEES CONTRIBUTION TOWARDS EPF HAS TO BE MADE B EFORE THE DUE DATE OR WITHIN THE GRACE PERIOD PRESCRIBED IN THE R ESPECTIVE ACT AND ANY ITA NO.527/VIZAG/2017 M/S. V. DHANA REDDY & COMPANY SHIPPING SERVICES, VS KP 2 PAYMENT MADE THEREAFTER IS HIT BY THE PROVISIONS OF SECTION 43B OF THE ACT. 2. THE ASSESSEE RELIED UPON SEVERAL DECISIONS INCLU DING THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF ALUM EX TRUSIONS 319 ITR 306 TO CONTEND THAT DISALLOWANCE CANNOT BE MADE IF PAYMENTS WERE MADE BEFORE THE DUE DATE FOR FILING RETURN OF INCOM E U/S 139(1) OF THE ACT. BUT THE LD. COMMISSIONER WAS OF THE OPINION T HAT THE SAID DECISIONS HAVE NO APPLICATION, ON A PLAIN READING O F THE PROVISION. 3. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE T HE TRIBUNAL. LD. COUNSEL RELIED UPON THE DECISION OF THE HONBLE ITA T, VISAKHAPATNAM BENCH IN THE CASE OF EASTER POWER DISTRIBUTION COMP ANY OF A.P. LTD. IN ITA NO.609/VIZAG/2014 DATED 29.7.2016, WHEREIN UNDE R IDENTICAL CIRCUMSTANCES, THE TRIBUNAL OBSERVED THAT SO LONG A S THE PAYMENT IS MADE ON OR BEFORE THE DUE DATE OF FURNISHING THE RE TURN OF INCOME U/S 139(1) OF THE ACT, NO DISALLOWANCE CAN BE MADE TOWA RDS EMPLOYEES CONTRIBUTION TO PF. IT WAS ALSO STATED THEREIN THA T THOUGH THE REVISIONAL AUTHORITY, IN THE AFORE CITED CASE, RELIED UPON CER TAIN JUDICIAL PRECEDENTS IN FAVOUR OF THE REVENUE, SINCE THERE ARE TWO VIEWS POSSIBLE, HE OUGHT TO HAVE FOLLOWED THE VIEW WHICH IS IN FAVOUR OF THE AS SESSEE. 4. ON THE OTHER HAND, THE LD. D.R. RELIED UPON THE ORDER OF THE REVISIONAL AUTHORITY AND STRONGLY SUPPORTED THE SAM E. ITA NO.527/VIZAG/2017 M/S. V. DHANA REDDY & COMPANY SHIPPING SERVICES, VS KP 3 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSION S AND PERUSED THE RECORD. THE ITAT, VISAKHAPATNAM BENCH HAD CONS ISTENTLY TAKEN A VIEW, ON AN ANALYSIS OF THE PROVISIONS OF SECTION 4 3B R.W.S 36(1)(VA) OF THE ACT, THAT NO DISALLOWANCE IS PERMISSIBLE, IF TH E EMPLOYEES CONTRIBUTION IS DEPOSITED WITHIN THE TIME PROVIDED U/S 139(1) OF THE ACT. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW THAT THE LD. COMMISSIONER WAS NOT JUSTIFIED IN SETTING A SIDE THE ORDER OF THE A.O. ON THIS ASPECT MERELY BECAUSE HE HOLDS A DIFFE RENT VIEW ON THE MATTER. THEREFORE, THE APPEAL FILED BY THE ASSESSE E IS ALLOWED AND THE ORDER PASSED BY THE CIT IS SET ASIDE. PRONOUNCED ACCORDINGLY, IN THE OPEN COURT ON 08.12 .2017. SD/- SD/- ( . . # % ) ( . ) (D.S. SUNDER SINGH) (D. MANMOHAN) ' /ACCOUNTANT MEMBER /VICE PRESIDENT $ /VISAKHAPATNAM: ( /DATED : 08.12.2017 VG/SPS ITA NO.527/VIZAG/2017 M/S. V. DHANA REDDY & COMPANY SHIPPING SERVICES, VS KP 4 *$ +$ /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT M/S. V. DHANA REDDY & COMPANY SH IPPING SERVICES, D.NO.23-23-2, BEACH ROAD, VISAKHAPATNAM 2. / THE RESPONDENT THE ITO, WARD-1(1), VISAKHAPATN AM 3. , / THE CIT-1, VISAKHAPATNAM 4. , ( ) / THE CIT (A), VISAKHAPATNAM 5. $ / , / , $ / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM