Mahalaxmi Tex prints Private Limited, Hyderabad V. Income Tax Officer Ward-3(1), Hyderabad

ITA 712/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6028 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 23-11-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N ESTHER
• Assessee Lawyers: SHIKA MANTRI; SIDHARTH MANTRI
• Section: 201; 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODA R A, JUDICIAL MEMBER ITA NO S . 711 & 712 /HYD./20 20 ASSESSMENT YEAR: 201 8 - 19 & 2019 - 20 M/S SRI MAHALAXMI TEX PRINTS PVT. LTD. VS. ITO, WARD 3 ( 3 ) HYDERABAD HYDERABAD [PAN: AAECS9029C ] (APPELLANT) (RESPONDENT) FOR ASSESSEE : MS. SHIKA MANTRI AND SHRI SIDHARTH MANTRI, AR FOR REVENUE : S MT. N. ESTHER, D.R. DATE OF HEARING : 2 4 /0 3 /2021 DATE OF PRONOUNCEMENT : 20 /0 4 /2021 O R D E R TH IS ASSESSEES APPEAL S FOR A.Y. 2018 - 19 AND 2019 - 20 ARISE AGAINST THE C OMMISSIONER OF INCOME TAX (APPEALS) - 3 [CIT(A)] HYDERABAD S ORDER DATED 1 1 .09.2020 FOR A.Y. 2019 - 20 PASSED IN CASE NO. 1 0088 /2019 - 20 AND ORDER DATED 14.09.2020 FOR A.Y. 2018 - 19 IN CASE NO. 10086/2020 - 21 IN PROCEEDINGS U/S 1 43(1) AND S.154 OF THE INCOME TAX ACT, 1961 [IN SHORT THE ACT] ; RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILE PERUSED. AT THE OUTSET I OBSERVE THAT THERE IS A DELAY OF 06 DAYS AND 04 DAYS RESPECTIVELY IN FILING OF THESE APPEALS WHICH STAND CONDONED AS PER ASSESSEES AVERMENTS IN THE CONDONATION PETITIONS DATED 18.11.2020 AND 20.11.2020 RESPECTIVELY. ITA NO. 711 AND 712 /HYD/ 2020 AY 2018 - 19 & 2019 - 20 M/S SRI MAHALAXMI TEX PRINTS PVT. LTD , HYD. 2 2. COMING TO THE SOLE ISSUE RAISED IN BOTH THESE APPEALS IN RESPECT OF ESI PF DEDUCTION OF RS. 3, 41,038 / - INVOLVING RS. 3, 32,933/ - AND RS 8,105/ - (FOR AY 2018 - 19) , AND RS.4,10,154/ - IN RESPECT OF ESI PF DEDUCTION INVOLVING RS.3,57,600/ - AND RS.52,954/ - (FOR AY 2019 - 20) RESPECTIVELY; NOT DEPOSITED WITHIN DUE DATE AS CONTEMPL ATED UNDER EPF AND MISC. PROVISIONS ACT, 1952 AND ESI ACT, 1948; RESPECTIVELY, BUT BEFORE THE DUE DATE OF FILING RETURN U/S 139(1) OF THE ACT, I NOTICE THAT THE LEARNED LOWER AUTHORITIES HAVE INVOKED SEC.154 JURISDICTION. LEARNED DEPARTMENTAL REPRESENTAT IVE FAILS TO DISPUTE THAT HONBLE HIGH COURTS HAVE ADOPTED VARYING OPINIONS REGARDING CORRECTNESS OF THE IMPUGNED CLAIM. TAKE FOR INSTANCE THE CASE LAW AGAINST THE ASSESSEE I.E. CIT VS GUJARAT STATE ROAD TRANSPORT CORPORATION (2014) 366 ITR 170 (GUJ.) AN D IN FAVOUR OF ASSESSEE CIT VS. AIMIL LTD. 229 CTR 118 (2010) (DEL) BIHAR STATE WAREHOUSING CORPN VS CIT 38 ITR 140 (PAT). IT IS THUS CLEAR THAT THE IMPUGNED DISALLOWANCE ISSUE HAS BEEN WRONGLY RAISED BY THE ASSESSING OFFICER IN SEC.154 PROCEEDINGS ON A DEBATABLE ISSUE AS PER TS BALRAM VS. VOLKART BROTHERS (1971) 82 ITR 50 (SC). I THEREFORE ACCEPT ASSESSEES SOLE SUBSTANTIVE GROUND FOR THIS REASON ALONE AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED ADDITION S FOR BOTH THESE A.YS 2018 - 19 AND 2 019 - 20 RESPECTIVELY. BOTH THESE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 20 /0 4 /2021. SD/ - (S.S. GODARA) JUDICIAL MEMBER DATED: 20 TH APRIL, 2021 GMV ITA NO. 711 AND 712 /HYD/ 2020 AY 2018 - 19 & 2019 - 20 M/S SRI MAHALAXMI TEX PRINTS PVT. LTD , HYD. 3 COPY OF ORDER FORWARDED TO: 1. M/S S RI MAHALAXMI TEXPRINTS PVT. LTD., 21 - 1 - 822, R J MARKET, PATEL MARKET, HYDER ABAD - 500 002 , TELANGANA. 2. ITO, WARD 3 ( 3 ), HYDERABAD 3. ACIT, RANGE 3 , HYDERABAD 4. CIT(A) - 3 , HYDERABAD. 5. PR.CIT - 3 , HYDERABAD 6 DY.CIT, CPC, BENGALURU 7. D.R. ITAT HYDERABAD 8 . GUARD FILE