M/s. Raajratna Metal Industries Ltd., Ahmedabad V. The Joint Commissioner of Income Tax,(OSD) Circle-3(1)(2), Ahmedabad

ITA 83/AHD/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 2618 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Appeal Filed On: 02-05-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PURSHOTTAM KUMAR
• Section: 2; 143(3); 144C

Judgement Text

आयकर अपीलीय अिधकरण, अहमदाबाद ᭠यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ D’’ BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT AT AHMEDABAD) BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER And SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 83/AHD/2021 िनधाᭅरण वषᭅ/Asstt. Years: 2015-16 Raajratna Metal Industries Limited, 909, Skar-III, Nr. Income Tax Circle, Ashram Road, Ahmedabad. PAN: AAACR9980M Vs. J.C.I.T.(OSD), Circle-3(1)(2), Ahmedabad. (Applicant) (Respondent) Assessee by : Shri Prakash D. Shah, A.R Revenue by : Shri Purshottam Kumar, Sr.D.R सुनवाई कᳱ तारीख/Date of Hearing : 04/05/2022 घोषणा कᳱ तारीख /Date of Pronouncement: 11/05/2022 आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income (Appeals)-13, Ahmedabad, dated 01/03/2021 arising in the matter of assessment order passed under s. 143(3) r.w.s 144C of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2015-16. ITA no.83/AHD/2021 A.Y. 2015-16 2 2. The assessee has raised following grounds of appeal: 1. That the learned Commissioner of Income Tax(Appeals) has erred in law and facts by confirming the addition u/s.36(1)(va) r.w sub clause (x) of clause 24 of section 2 of the Income Tax Act related to late deposit of Contribution to Provident Fund and ESIC of Rs.7,09,444/- and therefore the learned AO should be directed to delete the said addition while computing the Total Income. 2. That your appellant craves a leave to add, alter or amend any grounds at the time of hearing. 3. The only issue raised by the assessee is that the learned CIT-A erred in confirming the addition of Rs. 7,09,444/- on account of late deposit of employees contribution towards PF and ESIC. 4. The assessee, a public company, is engaged in the business of manufacturing of S.S. Wire & Bright bars and trading in metal and allied materials. It was found by the AO that the assessee during the year deposited employees contribution towards PF and ESIC of Rs. 7,09,44/- in relevant account after the due date as provided under respective Act. Therefore, the AO added the same to the total income of the assessee by invoking the provisions of section 36(1)(va) read with section 2(24)(x) of the Act. The impugned addition was subsequently confirmed by the learned CIT-A. 5. Being aggrieved by the order of the learned CIT-A the assessee in is appeal before us. 6. The ld. AR before us did not dispute about the disallowance to be made on account of delayed deposit of employee’s contribution towards PF and ESIC. It was prayed by the learned AR that the above referred order of the Hon’ble Gujarat High Court has been challenged before the Hon’ble Supreme court and outcome of the same is pending. In the event, if the Hon’ble Supreme court reverses the finding of the Hon’ble Gujarat High Court then it should be open for the assessee to revive this appeal within three month from the date of order of the Hon’ble Supreme Court. 7. On the contrary, the ld. DR vehemently supported the order of the authorities below. ITA no.83/AHD/2021 A.Y. 2015-16 3 8. We have heard the rival contentions of both the parties and perused the materials available on record. At the outset we note that the issue on hand is squarely covered against the assessee by the order of the Hon’ble Jurisdictional High Court of Gujarat in case of CIT vs. Gujarat State Road Transport Corporation India Limited reported in 366 ITR 170. However, at the time of hearing it was contended by the learned AR for the assessee that the above referred order of the Hon’ble Gujarat High Court has been challenged before the Hon’ble Supreme court and outcome of the same is pending. 8.1 In our considered view, the issue is covered against the assessee at this stage and deserve to be dismissed. However in the event if the Hon’ble Supreme court reversed the finding of the Hon’ble Gujarat High Court then it would be open for the assessee to revive this appeal within three month from the date of order of the Hon’ble Supreme Court by filing an application to this effect. In holding so, we draw support and guidance from the judgment of Hon’ble Gujarat High Court in the case of DECO MICA LIMITED vs DCIT in R/Tax appeal No. 302 of 2021 order dated 7-1-2022 wherein it was held as under: We dismiss this appeal at this stage. However, in the event, if the Supreme Court reverses the judgement in the G.S.R.T.C (Supra) , it would be open for the appellant herein to revive this appeal by filing an application for such purpose within three months from the date of the judgment. The appeal stands disposed of accordingly. 8.2 In view of the above and after considering the facts in totality, the ground of appeal of the assessee is hereby dismissed in accordance with above discussion. 9. In the result, the appeal of the assessee is dismissed. Order pronounced in the Court on 11/05/2022 at Ahmedabad. Sd/- Sd/- (MAHAVIR PRASAD) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad; Dated 11/05/2022 Manish