The ITO-1(2), Bhopal V. Gyanendra Pratap Singh, Bhopal

ITA 82/Ind/2019

• Counselvise Citation: [2020] 109 COUNSELVISE.COM (IT) 9026 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 03-06-2020
• Assessment Year: 2009-2010
• Appeal Filed On: 04-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YASHWANT SHARMA
• Assessee Lawyers: PUNEET KUMAR
• Section: 43B; 139(1)

Judgement Text

SMC I.T.A. NO.82 OF 2019 GYANENDRA PRATAP SINGH 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE SMC BENCH, INDORE VIRTUAL HEARING BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.82IND/2019 A.Y. 2009-10 ITO-1(2), BHOPAL / VS. GYANENDRA PRATAP SINGH, BHOPAL (APPELLANT) (REVENUE ) P.A. N. AEXPS 9350 J APPELLANT BY SHRI PUNEET KUMAR, SR. DR REVENUE BY SHRI YASHWANT SHARMA, CA DATE OF HEARING: 22.10.2020 DATE OF PRONOUNCEMENT: 23 .11.2020 / O R D E R THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS-3), BHOPAL DATE D 22.11.2018 CHALLENGING THE CONFIRMATION OF THE ADDITION OF RS. 3,78,109/- MADE BY THE AO ON ACCOUNT OF EMPLOYEE CONTRIBUTION OF PF U/ S 43B. SMC I.T.A. NO.82 OF 2019 GYANENDRA PRATAP SINGH 2 2. FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS AN IND IVIDUAL AND RETURN WAS FILED DECLARING TOTAL INCOME AT RS.7,17,750/- A ND AGRICULTURAL INCOME AT RS.4,60,000/-. HOWEVER, THE AO NOTED THAT THE ASSESSEE HAS NOT MADE PAYMENT TOWARDS EMPLOYEE CONTRIBUTION OF RS.3,78,109/- AND ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE. . 3. BEING AGGRIEVED, THE ASSESSEE FILED AN APPEAL B EFORE THE LD. CIT(A) WHO NOTED THAT THE ASSESSEE PAID RS.2,98,009 /- ON 16.1.2009, RS.50,199/- ON 04.4.2009 AND RS.29,901/- ON 27.4.20 09. HOWEVER, ON TWO OCCASIONS, THE ASSESSEE FAILED TO PAY EMPLOYEES CONTRIBUTION WITHIN TIME. ON CONSIDERATION OF WRITTEN SUBMISSION IN THE LIGHT OF THE RELEVANT JUDICIAL PRONOUNCEMENTS, THE LD. CIT(A) DE LETED THE ADDITION ON THE GROUND THAT SECTION 43B OF THE INCOME TAX AC T ALLOWS LATE PAYMENT OF STATUTORY LIABILITIES ON OR BEFORE DUE D ATE OF FILING OF RETURN U/S 139(1) IN RESPECT OF THE PREVIOUS YEAR IN WHICH THE LIABILITY TO PAY SUCH SUM WAS DUE. 4. BEING AGGRIEVED, THE REVENUE HAS FILED AN APPEAL BEFORE THIS TRIBUNAL. BEFORE ME, THE LD. SR. DR RELIED UPON THE ORDER OF THE AO. ON THE OTHER HAND, LD. COUNSEL FOR THE ASSESSEE REL IED UPON THE ORDER OF THE LD. CIT(A). SMC I.T.A. NO.82 OF 2019 GYANENDRA PRATAP SINGH 3 5. I HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. I FIND THAT SECTION 43B OF THE INCOME TAX ACT ALLOWS THE LATE PAYMENT OF STATUTORY LIABILITIES ON OR BEFORE DUE DATE OF FILI NG OF RETURN U/S 139(1) IN RESPECT OF THE PREVIOUS YEAR IN WHICH THE LIABILITY TO PAY SUCH SUM WAS DUE. MY VIEW IS SUPPORTED BY THE RATIO LAID DOWN IN THE FOLLOWING JUDICIAL PRONOUNCEMENTS: 1. CIT VS. ALOM EXTGRUSIONS LTD. (2009) 319 ITR 306 /185 TAXMAN 416 (SC); 2. SAGUN FOUNDRY P. LTD. VS. CIT (2017) 78 TAXMANN. COM 47 (ALL); 3. PR. CIT VS. HIND FILTER LTD. (2018) 90 TAXMANN.C OM 51 (BOM); AND 4. CIT VS. HEMLA EMBROIODERY MILLS P. LTD. (2014) 3 66 ITR 167 (P & H). ON CONSIDERATION OF ABOVE, I FIND THAT THE AO WAS N OT JUSTIFIED IN DISALLOWING THE PF LIABILITIES AT RS.3,78,109/-. I CONFIRM THE FINDING OF SMC I.T.A. NO.82 OF 2019 GYANENDRA PRATAP SINGH 4 THE LD. CIT(A). 6. IN RESULT, THE APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 23.11.2 020. SD/- (KUL BHARAT) JUDICIAL MEMBER INDORE; DATED : 23/11/2020 VYAS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUA RD FILE. BY ORDER ASSISTANT REGISTRAR, INDORE