DCIT, CIR-10(1), KOLKATA, Kolkata V. M/s LBI Export Pvt. Ltd., Kolkata

ITA 558/KOL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1038 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 30-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S ALLONG YADEN CIT LD
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : D BE NCH, KOLKATA BEFORE : SHRI WASEEM AHMED, ACCOUNTANT MEM BER AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO. 558/KOL/2016 A.Y 2012-13 DEPUTY COMMISSIONER VS. M/S. LBI EXPORT PVT. LIMI TED OF INCOME-TAX, CIR-10(1), PAN AABCL9880F [APPELLANT ] [RESPONDENT ] APPLICANT/APPELLANT BY : SHRI SALLONG YADEN, ADDL.CIT, LD.SR.DR RESPONDENT/DEPARTMENT BY : NONE APPEARED DATE OF HEARING : 26-10-2017 DATE OF PRONOUNCEMENT : 10-11-2017 ORDER SHRI S.S.VISWANETHRA RAVI, JM: THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DT. 11-02- 2016 OF THE CIT-A, 4, KOLKATA FOR THE A.Y 2012-13, WHEREIN HE DELETED THE IMPUGNED ADDITION ON ACCOUNT OF EMPLOYE ES CONTRIBUTION. 2. IT IS REPORTED THAT NEITHER ANY ONE APPEARED FOR THE ASSESSEE NOR ANY APPLICATION FILED FOR SEEKING ADJOURNMENT. THEREFORE, WE PROCEED TO HEAR THE LD.DR AND DISPOSE OF THE APPE AL ON MERITS AND BY PERUSING THE MATERIAL AVAILABLE ON RECORD. 3. THE ONLY ISSUE IS TO BE DECIDED AS TO WHETHER TH E CIT-A IS JUSTIFIED IN DELETING THE IMPUGNED ADDITION MADE U/ S. 2(24) R.W.S 36(1)(VA) OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS ENGAGED IN THE BUSINESS OF LEATHER BAGS AND FILED ITS E-RETURN ON 30-09-2012 DECLARING TOTAL INCOME OF RS.4,54,42,236/-. NOTICES U/S. 143(2) AND 142(1) OF THE ACT WERE ISSUED. IN RESPONSE TO WHICH , THE LD.AR OF THE ITA NO. 558/KOL/16 M/S. LBI EXPORT PVT. LTD 2 ASSESSEE COMPANY APPEARED FROM TIME TO TIME AND FU RNISHED BEFORE THE AO VARIOUS DETAILS INCLUDING AUDITED ACCOUNTS A S ASKED BY THE AO. ON PERUSAL OF AUDITED ACCOUNTS FILED BY THE ASSESSE E THE AO THAT EMPLOYEES CONTRIBUTION TO PF/ESI AMOUNTING TO RS.3 1,78,704/- (PF) AND RS.7,40,579/- (ESI) TOTALING TO RS. 39,19,283/- WERE DEPOSITED BY THE ASSESSEE AFTER THE DUE DATE OF PAYMENT AND A S PER SECTION 2(24) R.W.S 36(1)(VA) OF THE ACT CLAIMED THE SAME A S ALLOWABLE EXPENDITURE BY RELYING ON THE ORDER OF THE HONBLE SUPREME COURT IN THE CASE OF ALOM EXTRUSION LTD REPORTED IN 319 ITR 306, WHEREIN IT HAS BEEN HELD THAT PF/ESI ARE ALLOWED, WHEN THE SAM E WAS DEPOSITED BEFORE FURNISHING OF RETURN OF INCOME. BUT, THE AO WAS OF THE VIEW THAT SINCE THE ASSESSEE HAD FAILED TO DEPOSIT THE S AME WITHIN THE DUE DATES SPECIFIED U/S. 2(24) R.W.S 36(1)(VA) OF THE A CT ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE. 5. AGGRIEVED BY SUCH ORDER OF THE AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT-A. BEFORE HIM THE ASSESSEE HA S RELIED ON VARIOUS CASE LAWS AVAILABLE IN HIS ORDER IN SUPPORT OF ITS CLAIM. 6. THE CIT-A AFTER CONSIDERING THE SUBMISSION AND T HE CASE LAWS AS RELIED ON BY THE ASSESSEE DIRECTED TO DELETE THE IMPUGNED ADDITION. THE CIT-A IN HIS ORDER HAS ALSO HELD THAT AMOUNTS ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PF/ESI WERE D EPOSITED WELL BEFORE THE DATE OF FILING OF RETURN OF INCOME U/S. 13(1) OF THE ACT AND HELD THAT THE DISALLOWANCE MADE BY THE AO CANNOT BE SUSTAINED. 7. BEFORE US THE LD. DR RELIED ON THE ORDER OF THE AO IN MAKING THE IMPUGNED ADDITION ON THIS ISSUE. HE ALSO RELIED ON THE JUDGMENT OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. G SRTC AND PRAYED TO ALLOW THE APPEAL OF REVENUE. ITA NO. 558/KOL/16 M/S. LBI EXPORT PVT. LTD 3 8. HEARD THE LD. DR AND PERUSED THE RECORD. WE FIND THAT THE ISSUE IN HAND IS SQUARELY COVERED BY THE DECISIONS OF THE HONBLE SUPREME COURT IN THE CASES OF VINAY CEMENT LTD AND ALOM EXTRUSIONS LTD REPORTED IN (2009) 313 ITR (ST.1)(SC) AND IN ( 2009) 319 ITR 306(SC). WE FIND THAT THE IMPUGNED AMOUNT TOWARDS E MPLOYEES CONTRIBUTION TO PF/ESI WERE DEPOSITED WELL BEYOND T HE DUE DATE OF FILING OF RETURN. RESPECTFULLY FOLLOWING THE AFORES AID JUDGMENTS OF THE HONBLE SUPREME COURT IN THE CASES OF SUPRA , WE ARE OF THE VIEW THAT THE AO WAS NOT RIGHT IN MAKING THE IMPUGNED ADDITIO N. THE CIT-A WAS JUSTIFIED IN DIRECTING TO DELETE THE SAME. WE U PHOLD THE IMPUGNED ORDER OF THE CIT-A AND IT IS JUSTIFIED. THUS, THE GROUND(S) RAISED BY THE REVENUE IS LIABLE TO BE DISMISSED. 9. IN THE RESULT, THE APPEAL FILED BY THE REVEN UE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10-11-2017 SD/- SD/- WASEEM AHMED S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 10-11-2017 PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPLICANT/DEPARTMENT : THE DCIT, CIR-10(1), KOLKATA P-7 CHOWRINGHEE SQUARE, 3 RD FLOOR, KOLKATA-69. 2 RESPONDENT/ASSESSEE: M/S. LBI EXPORT PVT. LIMITED F. NO. 540, ZONE-6, KOLKATA LEATHER COMPLEX, BHOJER HAT, 24 PGS(S) PIN-743502. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER SR.P.S, HEAD OF OFFICE ITAT KOLKATA