ITO, Ward-2(2), Hyderabad, Hyderabad V. Golden Star Facilities and Services P. Ltd., Hyd, Hyderabad

ITA 840/HYD/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 4305 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 03-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A SITARAMA RAO
• Assessee Lawyers: P VINOD
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B (SMC) : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT ITA.NO.840/HYD/2016 ASSESSMENT YEAR 2013-2014 THE INCOME TAX OFFICER, WARD-2(2), HYDERABAD. VS. M/S. GOLDEN STAR FACILITIES AND SERVICES P. LTD., HYDERABAD 500 081. PAN AADCG2534K (APPELLANT) (RESPONDENT) FOR REVENUE : MR. A. SITARAMA RAO FOR ASSESSEE : MR. P. VINOD DATE OF HEARING : 04.10.2016 DATE OF PRONOUNCEMENT : 04.10.2016 ORDER PER D. MANMOHAN, V.P. THIS APPEAL IS FILED AT THE INSTANCE OF THE REVENUE. THE FOLLOWING GROUNDS WERE URGED BEFORE THE TRIBUNAL . 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE ASSESSEE WHOSE CONTRIBUTION TOWARDS PF/ES I IS NOT IN CONSONANCE WITH THE PROVISIONS OF THE EXPLAN ATION TO SECTION 36(1)(VA) IS ENTITLED TO CLAIM DEDUCTION OF THE SAME UNDER SECTION 43B OF THE INCOME TAX ACT ? 2. IF THE ANSWER TO THE ABOVE QUESTION IS IN THE NEGAT IVE, CANNOT THE REVENUE TREAT THE AMOUNT AS INCOME UNDER SECTION 2(24)(X) OF THE INCOME TAX ACT ? 3. IF NOT THE ORDER OF THE CIT(A) ON THE ISSUE WRONG A ND LACKS PERSPECTIVE FOR NON-CONSIDERATION OF THE ISSUE U/S 36(1)(VA) READ WITH SECTION 2(24)(X) OF THE INCOME TAX ACT? 4. IN FACTS AND CIRCUMSTANCES OF THE CASE, WHETHER THE CIT(A) IS CORRECT IN ALLOWING THE APPEAL OF THE ASSESSEE O N THE ISSUED OF REMITTANCES OF PF U/S 36(1)(VA) OF THE AC T THOUGH THE EXPLANATION TO THE SAID SECTION SPECIFY THE 'DU E DATE' 2 ITA.NO.840/HYD/2016 M/S. GOLDEN STAR FACILITIES & SERVICES P. LTD., HYDERABAD. FOR REMITTANCE IS WITH REFERENCE TO THE ACT, RULE, ORDER OR NOTIFICATION ISSUED THEREUNDER OR UNDER ANY STANDIN G ORDER, AWARD, CONTRACT OF SERVICE OR OTHERWISE ? 5. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 2. THE ASSESSEE REMITTED AN AMOUNT OF RS.1.52 CRORES, DEDUCTED AS THE EMPLOYEES CONTRIBUTION OF EPF & ESI, BEYOND THE SPECIFIED DATE AS MENTIONED IN THE RESPECTIVE ACTS AND THEREFORE, THE ASSESSING OFFICER ADDED THE SAME BY APPLYING THE P ROVISIONS OF SECTION 36(1)(VA) OF THE ACT. BEFORE THE CIT(A), THE ASSESSEE CONTENDED THAT EVEN IF THE EMPLOYEES CONTRIBUTION TO EPF & ESI WERE NOT PAID WITHIN THE DUE DATE AS PER THE PROVISIO NS OF SECTION 36(1)(VA) BUT IF THEY WERE PAID BEFORE THE DUE DATE OF FILING OF THE RETURN UNDER SECTION 139(1), THE SAME IS ALLOWABLE AS EXPENDITURE IN THE LIGHT OF DECISION OF THE HONBLE SUPREME COURT I N THE CASE OF CIT VS. ALOM EXTRUSIONS LTD., 319 ITR 36. LEARNED COUNSEL FOR THE ASSESSEE HAS ALSO PLACED RELIANCE UPON VARIOUS O THER DECISIONS INCLUDING THE DECISIONS, OF ITAT, HYDERABA D BENCH, AND SUBMITTED THAT EVEN IF THERE ARE ANY CONTRARY JUDGMENTS A VIEW WHICH IS IN FAVOUR OF THE ASSESSEE HAS TO BE ADOPTED I N THE LIGHT OF DECISION OF APEX COURT IN THE CASE OF VEGETABLE PRODU CTS LTD., 88 ITR 192. 3. LD. CIT(A) ACCEPTED THE CLAIM OF THE ASSESSEE IN THE LIGHT OF DECISION OF ITAT, A BENCH, HYDERABAD IN TH E CASE OF VBC INDUSTRIES LTD., HYDERABAD VS., DCIT (ITA.NO.143/HYD/ 2013) DATED 08.05.2015) WHICH, INTURN, WAS BASED ON THE DEC ISION OF THE HONBLE APEX COURT IN THE CASE OF ALOM EXTRUSIONS L TD., (SUPRA). 3 ITA.NO.840/HYD/2016 M/S. GOLDEN STAR FACILITIES & SERVICES P. LTD., HYDERABAD. 4. AGGRIEVED, REVENUE IS IN APPEAL BEFORE THE TRIBU NAL. NOTHING HAS BEEN BROUGHT ON RECORD TO SHOW THAT THE VIE W TAKEN BY THE HONBLE SUPREME COURT IN THE CASE OF ALOM EXTRU SIONS LTD., (SUPRA) AND FOLLOWED BY THE ITAT, HYDERABAD BE NCH CONSISTENTLY HAS BEEN QUESTIONED BEFORE THE JURISDICTIO NAL HIGH COURT. UNDER THESE CIRCUMSTANCES, CONSISTENT WITH THE VIEW TAKEN BY THE ITAT, HYDERABAD BENCHES, I UPHOLD THE OR DER OF THE LD. CIT(A) AND DISMISS THE APPEAL FILED BY THE REVENU E. ORDER PRONOUNCED IN THE OPEN COURT ON 04.10.2016. SD/- (D.MANMOHAN) VICE PRESIDENT HYDERABAD, DATED 04 TH OCTOBER, 2016 VBP/- COPY TO: 1. THE INCOME TAX OFFICER, WARD-2(2), ROOM NO.507, 5 TH FLOOR, SIGNATURE TOWERS, OPP. BOTANICAL GARDENS, KONDAPUR, HYDERABAD. 2. M/S. GOLDEN STAR FACILITIES & SERVICES P. LTD., PL OT NO.179, PHASE-II, KAVURI HILLS, MADHAPUR, HYDERABAD 81. 3. CIT(A)-2, HYDERABAD. 4. PR. CIT-2, HYDERABAD. 5. DEPARTMENTAL REPRESENTATIVE ITAT, B (SMC) BENCH, HYDERABAD 6. GUARD FILE.