The ACIT, Ratlam V. M/s Dynamic Enterprises, , Ratlam

ITA 638/Ind/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8842 (ITAT-INDORE)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 11-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 142(1); 250; 143(2); 139(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.638/IND/2018 ASSESSMENT YEAR: 2015-16 ACIT-RATLAM / VS. M/S. DYNAMIC ENTERPRISES, 65, GLOBUS TOWNSHIP, NEAR INDRALOK NAGAR, RATLAM (MP) ( REVENUE ) ( RE SPONDENT ) PAN: AAJFD9155C REVENUE BY SHRI K.G. GOYAL, SR. DR RESPONDENT BY SHRI KA I D E KANGSAWALA, CA DATE OF HEARING: 19.06.2019 DATE OF PRONOUNCEMENT: 26.06.2019 / O R D E R PER MANISH BORAD, A.M: THIS APPEAL BY REVENUE PERTAINING TO A.Y. 2015-16 IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INC OME TAX(APPEALS)- UJJAIN, (IN SHORT CIT(A)), DATED 24.04 .2018 WHICH IS ARISING OUT OF THE ORDER U/S 143(3) OF THE INCOME TAX ACT 1961(HEREINAFTER CALLED AS THE ACT) FRAMED ON 26.12.2017 BY ACIT, RATLAM. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL: DYNAMIC ENTERPRISES ITANO.638/IND/2018 2 (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, LD. CIT(A) WAS JUSTIFIED IN DELETING THE DISALLOWAN CE OF RS.14,19,387/- U/S 2(24)(X) R.W.S. 36(1)(VA) OF THE I.T. ACT MADE ON ACCOUNT OF DELAY IN PAYMENT OF PROVIDENT FU ND AND ESIC. (NOTE- THIS ISSUE IS COVERED UNDER THE EXCEPTIONS MENTIONED IN PARA (8(A) & (B) OF THE BOARDS CIRCUL AR NO.21/2015 DATED 10.12.2015 SINCE THE CONSTITUTIONA L VALIDITY OF THE PROVISIONS OF AN ACT OR RULE ARE UN DER CHALLENGED FOR THE A.Y. 2015-16) 2. BRIEF FACTS AS CULLED OUT FROM THE RECORDS ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM ENGAGED IN THE BUSINESS OF CLEANING CONTRACT AWARDED BY THE RAILWAYS. INCOME OF RS.71,99,890/- DECLARED IN THE RETURN OF INCOME FILE D ON 30.10.2015. CASE SELECTED FOR SCRUTINY THROUGH CASS FOLLOWED BY SERVING OF NOTICES U/S 143(2) AND 142(1) OF THE ACT. ASSESSMENT U/S 143(3) OF THE ACT WAS COMPLETED ON 26.12.2017 ASSESSING INCOME AT RS.94,19,277/- AFTER MAKING DISALLOWANCES OF RS.14,19,387/- WHICH INCLUDED DISALLOWANCE TOWARDS DELAY IN PAYMENT OF PROVIDENT FUND(PF) & ESIC CONTRIBUTION OF RS.14,19,387/-. 3. AGGRIEVED ASSESSEE PREFERRED AN APPEAL BEFORE THE L D. CIT(A) AGAINST THE IMPUGNED DISALLOWANCE OF RS.14,19,387/- MADE BY THE LD. AO U/S 2(24)(X) R.W.S . 36(I)(VA) OF THE ACT AND SUCCEEDED. DYNAMIC ENTERPRISES ITANO.638/IND/2018 3 5. NOW THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL CHALLENGING THE DISALLOWANCE OF RS.14,19,387/- TOWARDS DELAY IN PAYMENT OF PF & ESIC. 6. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMIT TED THAT THE ISSUE STANDS SQUARELY COVERED IN FAVOUR OF THE ASSES SEE BY THE JUDGMENT OF HON'BLE SUPREME COURT IN THE CASE OF CIT VS. RAJASTHAN STATE BEVERAGES CORPORATION LTD. (2017 ) 250 TAXMAN 0016, AS THE ASSESSEE HAS DEPOSITED THE IMPUGNED AMOUNT BEFORE FILING THE RETURN OF INCOME U /S 139(1) OF THE ACT. 7. PER CONTRA LEARNED DEPARTMENTAL REPRESENTATIVE (LD. DR) COULD NOT CONTROVERT THE CONTENTION MADE BY THE LD. COUNSEL FOR THE ASSESSEE. 8. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE REC ORD PLACED BEFORE US. THE REVENUES SOLE GRIEVANCE RELATES TO CHALLENGING THE FINDING OF LD. CIT(A) DELETING DISALL OWANCE OF RS.14,19,387/- MADE U/S 2(24) R.W.S. 36(I)(VA) OF THE ACT FOR DELAY IN PAYMENT OF PF & ESIC CONTRIBUTION. WE FIND THAT THE LD. CIT(A) DELETED THE IMPUGNED DISALLOWANCE OBSERVING AS FOLLOWS: DYNAMIC ENTERPRISES ITANO.638/IND/2018 4 GROUND NO.1,2 & 3:- THROUGH THESE GROUNDS OF APPEA L THE APPELLANT HAS CHALLENGED THE ADDITION OF RS.14,19,3 87/- U/S 2(24)(X) OF THE I.T. ACT. THE APPELLANT MADE THE AB OVE PAYMENTS BEFORE FILING OF RETURN OF INCOME. THE ABOVE EXPEND ITURE IS ALLOWABLE EXPENDITURE IN VIEW OF HON'BLE I.T.A.T., INDORES DECISION IN THE CASE OF ASSESSMENT. CIT V. INDIRA E XPORT PVT. LTD. (2013) 21 ITJ 372 (TRIB.-INDORE)-EMPLOYEES CON TRIBUTION TO PROVIDENT FUND-EMPLOYEES CONTRIBUTION TO PROVIDENT FUND- DELETION OF SECOND PROVISO TO SECTION 43B-HELD IN VIEW OF CIT V. ALOM EXTRUSIONS LTD. (2010) 14 ITJ 133 (HON'BLE SUPREME COURT), DELETION OF SECOND PROVISO IS RETROSPECTIVE -THEREFORE, EVEN IF EMPLOYEES CONTRIBUTION IS DEPOSITED BEFORE DUE DATE OF FILING OF RETURN, SAME IS ALLOWABLE. THEREFORE, THE ADDITION MADE BY THE AO AMOUNTING TO RS.14,19,387/- IS DELETED. T HEREFORE THE APPEAL ON THESE GROUNDS IS ALLOWED. 9. THE ABOVE FINDING OF THE LD. CIT(A) GOES UNCONTRO VERTED BY THE LD. DR. WE, THEREFORE, IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS ON ACCOUNT OF SETT LED POSITION OF LAW AS HELD BY HON'BLE APEX COURT IN THE CASE OF CIT VS. RAJASTHAN STATE BEVERAGES CORPORATION LTD. (SUPR A), FIND NO INCONSISTENCY IN THE FINDING OF THE LD. CIT (A) DELETING THE DISALLOWANCE OF RS.14,19,387/- MADE U/S 36(I)(VA) OF THE ACT ON OBSERVING THAT THE ALLEGED AMOU NT OF EMPLOYEES CONTRIBUTION TOWARDS PF & ESIC STANDS DEPOSITED BEFORE THE DUE DATE OF FILING OF RETURN OF INCOME U/S 139(1) OF THE ACT RELEVANT TO A.Y. 2015-16. DYNAMIC ENTERPRISES ITANO.638/IND/2018 5 10. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMI SSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 26 .06. 2019. SD/- (KUL BHARAT) SD/- (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER INDORE; DATED : 26 /06/2019 CTX? P.S/. . . COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR