DCIT, Bangalore V. M/s Apollo Power Systems Pvt. Ltd., Bangalore

ITA 529/BANG/2015

• Counselvise Citation: 52921114 RSA 2015
• 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
• Assessee Lawyers: B SOMASKANDA
• 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. 529 / BANG/20 15 (ASSESSMENT YEAR: 2011 - 12 ) DEPUTY COMMISSIONER OF INCOME - TAX, CIRCLE 1(1)(1) , BANGALORE. APPELLANT VS. M/S.APOLLO POWER SYSTEMS PVT. LTD. # 31, 1 ST FLOOR, 1 ST MAIN ROAD, CHAMARAJPET, BANGALORE. RESPONDENT PAN: ABCA1844Q APPELLANT BY: DR. P.K.SRIHARI, ADDL. CIT(DR). RESPONDENT BY: SHRI B.SOMASKANDA, ADVOCATE. DATE OF HEARING : 2 8 /07/2015 DATE OF PRONOUNCEMENT: 30 /07/2015 O R D E R PER SMT. P. MADHAVI DEVI, JM: IN THIS APPEAL, THE REVENUE IS AGGRIEVED BY THE ORDER OF THE ORDER OF THE CIT(A) I, BANGALORE, DATED 20/01/2015 IN ALLOWING T HE CLAIM OF THE ASSESSEE 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 C ONTRIBUTION TOWARDS PROVIDENT FUND AND ESI WITHIN THE DUE DATE I TA NO . 5 29 /BANG/20 1 5 M/S. APOLLO POWER SYSTEMS PVT. 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 ASSESSEE - 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 DU E DATE FOR SUCH REMITTANCES. 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 OF 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 BUT PAID BEFORE THE DUE DATE OF FILING OF RET URN U/S 139(1), THE SAME IS ELIGIBLE FOR DEDUCTION U/S 43B OF THE ACT. AGAINST THE RELIEF GIVEN BY THE CIT(A), REVENUE IS IN APPEAL BEFORE US. 4. THOUGH THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE AO AND THE LEARNED COUNSEL FOR THE ASSESSEE HAS RELIED UPON THE ORDER OF THE CIT(A) AS WELL AS THE DECISION OF THE JURISDICTIONAL HIGH COURT FOLLOWED BY THE CIT(A), WE FIND THAT THE ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY I TA NO . 5 29 /BANG/20 1 5 M/S. APOLLO POWER SYSTEMS PVT. LTD. PAGE 3 OF 3 THE DECISION OF THE JURISDICTIONAL HIGH COURT IN T HE CASE OF ESSAE TERAOKA PVT. LTD . (CITED SUPRA) AS WELL AS IN THE 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 DISMISSE D. PRONOUNCED IN THE OPEN COURT ON 30 TH JULY, 2015. S D/ - S D/ - (JASON P BOAZ) (SMT. P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER EKSRINIVASULU C OPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGA LORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE