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ITA 724/HYD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2644 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 16-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: S RAMA RAO
• Section: 43B; 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 724/HYD/2016 ASSESSMENT YEAR: 2011-12 GDC ADVERTISING PVT. LTD., HYDERABAD. PAN AAACG 7409A DY. COMMISSIONER OF INCOME-TAX, CIRCLE 2(3) HYD. APPELLANT RESPONDENT ASSESSEE BY: SHRI S. RAMA RAO REVENUE BY: SMT. SUMAN MALIK DATE OF HEARING: 18/01/2018 DATE OF PRONOUNCEMENT: 24/01/2018 O R D E R PER S. RIFAUR RAHMAN, AM: THIS APPEAL, FILED BY THE ASSESSEE AGAINST THE ORD ER OF CIT(A) - 2, HYDERABAD, DATED 29/01/2016, RELATES TO THE AY 2011-12. CIT(A) HAS DISMISSED THE APPEAL OF THE ASS ESSEE DUE TO NON-APPEARANCE ON THE DATE OF HEARING. IT IS NOTICED FROM HIS ORDER THAT CIT(A) HAS GIVEN NUMBER OF OPPO RTUNITIES. 2. BEFORE US, THE LD. AR OF THE ASSESSEE SUBMITTED A LETTER CLAIMING TO BE SUBMITTED BEFORE CIT(A) SEEKING ADJO URNMENT ON THE DATE OF HEARING. HOWEVER, THIS LETTER DOES N OT CONTAIN ANY CONFIRMATION OF SUCH SUBMISSION, WE CANNOT ACCE PT THE EVIDENCE SUBMITTED BEFORE US. HOWEVER, CIT(A) HAS D ISMISSED THE APPEAL ON MERITS ALSO. 3. LD. AR BROUGHT TO OUR NOTICE THAT IN THIS AY THE RE WERE TWO ISSUES, VIZ., I) RELATING TO COMMISSION PAYMENT TO AGENCIES I.T.A. NO. 724/HYD/2016 GDC ADVERTISING PVT. LTD. 2 AND II) RELATING TO DELAY IN REMITTANCE OF PF. HE S UBMITTED THAT IN EARLIER AY SIMILAR ISSUE OF PAYMENT OF COMMISSIO N WAS RAISED BY THE ASSESSEE IN AY 2010-11, WHEN ASSESSEE APPEALED AGAINST THE ORDER OF AO BEFORE THE ITAT, T HE ITAT IN ITS ORDER IN ITA NO. 1690/HYD/2013, DATED 16/05/201 4 (REFER PAGE 42 OF PAPER BOOK) REMITTED THE ISSUE BACK TO T HE FILE OF THE AO FOR NECESSARY ENQUIRY WITH THE CONCERNED DEPARTMENT/PSUS TO FIND OUT THE GENUINENESS OF THE PAYMENT TOWARDS COMMISSION. ACCORDINGLY, THE THEN AO, VERIF IED THE ISSUE AND ALLOWED THE CLAIM OF THE ASSESSEE IN AY 2 010-11 BY PASSING A CONSEQUENTIAL ORDER, WHICH IS PLACED ON R ECORD AT PAGES 46 TO 48 OF THE PAPER BOOK. 4. ON THE OTHER HAND, LD. DR OBJECTED TO THE SUBMIS SIONS OF LD.AR AND SUBMITTED THAT SOME OF THE PAYMENTS WE RE MADE TO EMPLOYEES ALSO. 5. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED MAT ERIAL ON RECORD. WE FIND THAT SIMILAR PAYMENTS WERE MADE IN AY 2010-11 AND THE COORDINATE BENCH OF THIS TRIBUNAL H AS REMITTED THIS ISSUE BACK TO THE FILE OF THE AO TO M AKE NECESSARY ENQUIRY FOR THE PAYMENT OF COMMISSION AND , THE THEN AO HAS VERIFIED THE ISSUE IN DETAIL, WHICH WAS DISCUSSED IN THE CONSEQUENTIAL ORDER PASSED BY HIM DATED 30/1 2/2016. WE FIND THAT THE PAYMENTS WERE MADE TO THE SIMILAR AGENCIES IN CURRENT AY ALSO. SINCE THE AOS PREDECESSOR HAS MADE ENQUIRIES ON THE PAYMENT OF COMMISSION AND COLLECTE D THE DETAILED INFORMATION FROM AGENCIES U/S 133(6) OF T HE ACT, WE ARE INCLINED TO ACCEPT THE CONTENTION OF THE ASSESS EE AND ALLOW THE GROUND RAISED BY THE ASSESSEE. 5.1 WITH REGARD TO DELAY IN PAYMENT OF PF, WE FIND THAT THE ASSESSEE HAS MADE PAYMENT RELATING TO PF BEYOND THE DUE I.T.A. NO. 724/HYD/2016 GDC ADVERTISING PVT. LTD. 3 DATE AS STIPULATED IN THE PF ACT, WITH A DELAY OF F EW DAYS, BUT, REMITTED THE SAME BEFORE FILING OF RETURN OF INCOME . THE COORDINATE BENCHES OF TRIBUNAL HAVE CONSISTENTLY FO LLOWED THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ALOM EXTRUSIONS 319 ITR 306 WHEREIN IT WAS HELD THAT THE CONTRIBUTIONS TO P.F. AND ESI ARE ALLOWABLE UNDER S ECTION 43B OF THE ACT IF THEY ARE PAID BEFORE THE DUE DATE OF FILING OF THE RETURN OF INCOME AND ALLOWING THE PAYMENTS TOWARDS PF, IF THEY ARE PAID BEFORE FILING OF THE RETURN OF INCOME . THEREFORE, WE ALLOW THIS GROUND OF APPEAL OF THE ASSESSEE AS T HE ASSESSEE HAS REMITTED THE PAYMENTS TOWARDS PF BEFOR E FILING OF THE RETURN OF INCOME. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON 24 TH JANUARY, 2018. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER SD/- (S. RIFAUR RAHMAN) ACCOUNTANT MEMBER HYDERABAD, DATED 24 TH JANUARY, 2018 KV COPY FORWARDED TO: 1. GDC ADVERTISING PVT. LTD., SRI S. RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYAS ELEGANCE, 3-6-643, STREET NO . 9, HIMAYATNAGAR, HYDERABAD 500 029 2. DCIT, CIRCLE 2(3), IT TOWERS, AC GUARDS, HYDER ABAD 3. CIT(A) - 2, HYDERABAD 4 PR.. CIT - 2, HYDERABAD 5 THE DR, ITAT, HYDERABAD 6 GUARD FILE