M/s Modgill Hosiery Exports (P) Ltd., Ludhiana V. ACIT, Ludhiana

ITA 661/CHANDI/2012

• Counselvise Citation: 66121514 RSA 2012
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 26-09-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 13-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILESH GUPTA
• Assessee Lawyers: SUDHIR SEHGAL
• Keywords: Condonation of delay
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO.661/CHD/2012 (ASSESSMENT YEAR : 2007-08) M/S MODGILL HOSIERY EXPORTS (P)LTD., VS. THE A.C. I.T., 2, BAL SINGH NAGAR, RAHON ROAD, CIRCLE-III, LUDHIANA. LUDHIANA. PAN: AABCM1393G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUDHIR SEHGAL RESPONDENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 26.09.2012 DATE OF PRONOUNCEMENT : 04.10.2012 O R D E R PER SUSHMA CHOWLA, J.M, : THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-II, LUDHIANA DA TED 09.03.2012 RELATING TO ASSESSMENT YEAR 2007-08 AGAINST THE ORD ER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961. 2. THE PRESENT APPEAL IS FILED AFTER A DELAY OF 29 DAYS. THE ASSESSEE MOVED AN APPLICATION FOR CONDONATION OF DELAY OF 29 DAYS IN FILING THE PRESENT APPEAL. THE CONTENTION OF THE ASSESSEE WAS THAT THE TWO APPEALS WERE DECIDED BY THE CIT (APPEALS) I.E. ONE OF THE A SSESSEE AND ONE OF ITS SISTER CONCERN. THE ORDER OF THE CIT (APPEALS) IN THE PRESENT APPEAL WAS RECEIVED ON 16.3.2012 AND IN THE CASE OF SISTER CON CERN WAS RECEIVED ON 21.4.2012. THAT THE APPEALS IN BOTH THE CASES BEFO RE THE TRIBUNAL WERE FILED ON 13..6.2012. THE DELAY IN THE FILING OF PR ESENT APPEAL LATE BY 29 DAYS WAS UN INTENTIONAL AND HENCE THE APPLICATION F OR CONDONATION OF DELAY. IN THE FACTS AND CIRCUMSTANCES AS NARRATED BY THE ASSESSEE WE 2 FIND MERIT IN THE CLAIM OF THE ASSESSEE AND THE DE LAY OF 29 DAYS IN FILING THE PRESENT APPEAL IS CONDONED AND THE APPEAL IS TA KEN ON RECORD. 3. THE ASSESSEE THOUGH HAS RAISED SEVERAL GROUNDS O F APPEAL BUT THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST THE ADDITION OF RS.1,86,799/- MADE ON ACCOUNT OF EMPLOYEES CONTRIB UTION ON ACCOUNT OF PROVIDENT FUND AND ESIC. THE LEARNED A.R. FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT THE ISSUE STANDS COVERED BY THE RATIO LAID DOWN IN CIT VS. M/S LAKHANI INDIA LTD. (2010) 188 TAXMAN 13 2 (P&H). 4. THE LEARNED D.R. FOR THE REVENUE PLACED RELIANCE ON THE ORDER OF THE CIT (APPEALS). 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT P ROCEEDINGS NOTED THE ASSESSEE TO HAVE MADE BELATED PAYMENT TOWARDS EMPLO YEES CONTRIBUTION OF PF AND ESIC AMOUNTING TO RS.1,86,799/-. THE DET AILS OF THE PF LIABILITY AND ESIC LIABILITY WHICH WAS PAID BEYOND THE DUE DATE IS TABULATED AS PART OF THE ASSESSMENT ORDER. IT IS N OT IN DISPUTE THAT THE ABOVE SAID AMOUNT HAS BEEN PAID BY THE ASSESSEE BEF ORE THE DUE DATE OF FILING THE RETURN OF INCOME, AS IS APPARENT FROM TH E DETAILS INCORPORATED IN THE ASSESSMENT ORDER. 6. THE ONLY ISSUE ARISING IN THE PRESENT APPEAL IS WHETHER SUCH BELATED PAYMENT OF EMPLOYEES CONTRIBUTION TO ESIC AND PF, WHICH HAD BEEN MADE BEFORE THE DUE DATE OF FILING THE RETURN OF INCOME ARE TO BE ALLOWED AS A DEDUCTION. WE FIND THAT THE ISSUE RAI SED IS SQUARELY COVERED BY THE RATIO LAID DOWN BY THE JURISDICTIONA L HIGH COURT IN CIT VS. M/S LAKHANI INDIA LTD.(SUPRA). FOLLOWING THE A BOVE SAID RATIO LAID DOWN BY THE HON'BLE PUNJAB & HARYANA HIGH COURT, CI T VS. M/S LAKHANI INDIA LTD.(SUPRA) WE DIRECT THE ASSESSING OFFICER T O ALLOW THE DEDUCTION 3 OF RS.1,86,799/- BEING THE CONTRIBUTION MADE BY THE EMPLOYEES TOWARDS PF AND ESIC, WHICH WAS PAID BEFORE THE CLOSE OF THE FINANCIAL YEAR. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE ALLOWE D. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH DAY OF OCTOBER, 2012. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 4 TH OCTOBER, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH