Sri Srinivasa Dairy Products Private Limited , Hyderabad V. Income Tax Officer ,Ward-3(3), Hyderabad

ITA 694/Hyd/2020

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 7428 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2019-2020
• Appeal Filed On: 17-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: LAXMINIVAS SHARMA
• Section: 143(1); 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”: HYDERABAD (THROUGH VIRTUAL CONFERENCE) B EFORE SH RI CH ANDRA MO HAN G A RG, JUDI CI AL MEM BER AND SHR I L AXMI PR AS A D SAHU , AC COUNT ANT MEMBE R ITA No. 694/H/2020 A.Y.: 2019-2020 Sri Srinivasa Dairy Products Pvt. Ltd., Hyderabad. PAN – AAHCS1709C Vs. Income-tax Officer, Ward – 3(3), Hyderabad. (Appellant) (Respondent) Assessee by: Shri Laxminivas Sharma Revenue by: Shri Rohit Mujumdar Date of hearing: 11/10/2021 Date of pronouncement: 29/11/2021 O R D E R PER BENCH: This appeal filed by the assessee is directed against CIT(A) - 3, Hyderabad’s order dated 17/09/2020 for AY 2019-20 involving proceedings u/s 143(1) of the Income Tax Act, 1961. 2. The assessee has raised 5 grounds of appeal and an additional ground of appeal, the sum and substance of which is against the action of the revenue authorities in ITA No. 694/Hyd/2020 Sri Srinivasa Dairy Products Pvt. Ltd., Hyd. :- 2 -: making addition of Rs. 1,68,212/- towards delayed payment of employee’s contribution to PF. 3. Briefly the facts of the case are that the assessee company, filed its return of income for the AY 2019-20 on 29/10/2019, admitting a total income of Rs. 8,01,48,320/-. The AO completed the assessment determining the total income of the assessee at Rs. 8,03,16,530/- by making an addition of Rs. 1,68,212/- towards delayed payment of employee’s contribution to PF. 4. When the assessee preferred an appeal before the CIT(A), the CIT(A) confirmed the assessment order. 5. Aggrieved by the order of CIT(A), the assessee is in appeal before the ITAT and submitted that though it paid the employee’s contribution of PF belatedly, the entire amount was paid before the due date of filing the return of income u/s 139(1) of the Act and accordingly, contended that the revenue authorities were not justified in assessing the employee’s contribution to PF as income by ignoring the decisions of various Courts on this issue. 6. On the other hand, the ld. DR relied on the orders of revenue authorities. ITA No. 694/Hyd/2020 Sri Srinivasa Dairy Products Pvt. Ltd., Hyd. :- 3 -: 7. We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. The law is settled on this issue if the assessee has paid the PF and ESI payments before the due date of filing of return income u/s 139(1) of the Act, no disallowance is warranted as held by the coordinate bench of this Tribunal in the case of Vijaya Electricals Ltd., Hyderabad in ITA Nos. 1533 & 1534/Hyd/2017 for AYs 2013-14 & 2014-15 vide order dated 27/05/2021. Respectfully, following the above decision of the coordinate bench, we set aside the order of the CIT(A) and direct the AO to delete the disallowance of 1,68,212/- made towards employee’s contribution to PF. Accordingly, the grounds raised by the assessee on this issue are allowed. 8. In the result, appeal of the assessee is allowed in above terms. Pronounced under Rule 34(4) of ITAT Rules, 1963 on 29/11/2021. Sd/- Sd/- (CHANDRA MOHAN GARG) (L. P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated: 29 th November, 2021. kv ITA No. 694/Hyd/2020 Sri Srinivasa Dairy Products Pvt. Ltd., Hyd. :- 4 -: Copy to : 1 Sri Srinivasa Dairy Products Pvt. Ltd., 4-4-65, Esamia Bazar, Koti, Hyderabad – 500 027 2 ITO, Ward – 3(3), Signature Towers, Opp. Botanical Gardens, Serlingampally (M), RR District, Hyderabad. 3 CIT(A) - 3, Hyderabad 4 Pr. CIT - 3, Vijayawada 5 ITAT, DR, Hyderabad. 6 Guard File.